Many of the people behind 38 Studios, the now former game developer formed by former Boston Red Sox pitcher Curt Shilling, are now facing what could be a massive court battle. The Rhode Island Economic Development Corporation, which gave 38 Studios a whopping $75 million loan, has now filed a lawsuit against Shilling and other members of the team.
WPRI.com reports that, according to the lawsuit, 38 Studios failed to tell the Commission that it was "undercapitalized by many millions of dollars" and "was likely to run out of money in 2012."
The Commission gave the huge loan to Shilling's company in 2010, in return for Shilling moving his headquarters from Massachusetts to Rhode Island. The company hired hundreds of people to develop a fantasy MMO, Project Copernicus.
However, the game was still in the early stages of development when 38 Studios flat out ran out of money. In May, the company laid off all of its team members and in June it filed for Chapter 7 bankruptcy. The assets of the company are currently being auctioned off.
Shilling has said in past interviews that the state of Rhode Island pulled out of promises to help 38 Studios. He has also said that the failure of his company will likely cause him to lose all of the money he made during his pro baseball career.
Source: WRPI.com | Image via 38 Studios
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