The Rhode Island Economic Development Corporation (RIEDC) - the quasi-public agency behind the now infamous $75 million loan to former baseball star-cum-game developer Curt Schilling - has filed a lawsuit against the head of now defunct 38 Studios for losing the state's money.
Four month ago, Rhode Island Governor Lincoln Chafee hired lawyer Max Wistow to look into whether the state had a case and based on his findings, the RIEDC decided to take legal action against Schilling and other architects of the 2010 loan including 38 Studios CEO Jennifer McLean, former EDC executive director Keith Stokes, Wells Fargo Securities, Barclays Capital and several others.
The 97 page complaint noted, "even with the loan from the EDC, 38 Studios was undercapitalized by many millions of dollars and would not have nearly enough money to relocate to Rhode Island and complete Copernicus, and that, as a result of this cash shortfall, 38 Studios was likely to run out of money in 2012."
"I know you work hard for your paychecks, and for your tax dollars to be squandered is unacceptable," said Gov. Chafee in a prepared video statement below. "The board's legal action was taken to rectify a grave injustice put upon the people of Rhode Island."
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