Rhode island's claims of fraud implausible, says founder of collapsed developer

Schilling calls for dismissal of 38 Studios lawsuit

The founder of 38 Studios has asked that a lawsuit against him and other studio executives be dismissed.

Rhode Island claims the former Red Sox pitcher Chris Schilling and his executives committed fraud, racketeering, and conspiracy by misleading the state during the course of a deal that granted the game developer $75 million in state guaranteed loans.

The deal brought the studio from Boston to Rhode island, and saw the team through the launch of Kingdoms of Amalur.

The all-star cast at 38 Studios didn’t see any income from the deal and was left without a fresh source of capital, leading to a nationally publicised bankruptcy that left Rhode Island on the hook for about $100 million after interest.

A federal investigation cleared Schilling of any wrongdoing, but the State went ahead and filed a lawsuit, claiming that Schilling hid the fact the game would take more money to complete than that provided in the loan.

The Associated Press reports that Schilling has requested the court dismiss the case.

"Given the EDC’s admissions concerning 38 Studios’ disclosures to the EDC’s executives, attorneys and financial advisor, it is impossible for the EDC simultaneously to claim that the 38 Studios defendants supposedly defrauded the EDC," read the filing from Schilling’s lawyers.

Schilling said the lawsuit is a political move, and accused Governor Lincoln Chafee of undermining a deal that would have saved 38 Studios.

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