38 Studios execs request lawsuit be dropped

38 Studios execs request lawsuit be dropped
Seth Tipps

By Seth Tipps

May 1st 2013 at 7:34AM

Suits say they gave the state full information of their financial situation

Executives of bankrupt developer 38 Studios has asked the judge to dismiss the lawsuit brought by the state of Rhode Island.

Rhode Island filed suit against the executives in November after the studio went under, leaving the state on the hook for $75 million in taxpayer-backed loans.

The Kingdoms of Amalur developer was investigated by both state and federal authorities, but the feds found no case against the company.

RI claims the executives knowingly withheld evidence of their company's financial situation, and says it has "crushing evidence" to prove it.

Defendants named in the case include studio founder and Red Sox hero Curt Schilling, and company executives Rick Wester, Jennifer MacLean, and Tom Zaccagnino.

Lawyers for the defendants told the Providence Journal that the Rhode Island Economic Development Corporation "failed to present any specific allegations to substantiate any claim that 38 Studios defendants conspired or colluded with anyone to defraud the EDC."

This is the second time the judge has been asked to drop the case.