15 Sep 2014
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Rhode Island Suing Schilling for Defaulting on $75 Million Loan

The case was filed on Thursday in Rhode Island Superior Court.

Rhode Island Suing Schilling for Defaulting on $75 Million Loan

 

The state of Rhode Island filed suit on Thursday against Curt Schilling for defaulting on the $75 million loan guarantee for his failed video game company, 38 Studios, according to The Boston Channel

The suit also names the former executive director of the Economic Development Corp. as well as another former EDC official who worked closely on the deal.

To hear what Rhode Island Governor Lincoln Chafee's says about filing the suit, click here.

The lawsuit alleges, among other things, that Schilling, 38 Studios executives, and others, engaged in racketeering and conspiracy, according to Boston.com. The suit does not ask for a specific dollar amount but wants Schilling and others to repay the bonds and seeks triple damages.

38 Studios collapsed into bankruptcy in June. Rhode Island is likely responsible for about $100 million when interest is factored in on the bonds the state issued on the company’s behalf, according to Boston.com.

 

 

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