On Friday, former Red Sox pitcher and 38 Studios founder Curt Schilling's attorneys asked a Rhode Island judge to dismiss the lawsuit filed against him and other former 38 Studios executives, according to a report from the Associated Press.
According to the AP, attorneys representing the bankrupt 38 Studios filed a request with Superior Court Judge Michael Silverstein to throw out the state's lawsuit. Attorneys reportedly argued that 38 Studios executives disclosed its financial needs to the Rhode Island Economic Development Corp. and did not defraud the state agency.
Rhode Island and the EDC sued Schilling's studio and its lenders in November 2012, alleging fraud, negligence and civil conspiracy over the state-backed funding of 38 Studios' relocation to Rhode Island and the development of massively multiplayer online role-playing game Copernicus.
In 2010, the RIEDC backed a $75 million loan guarantee to bring the fledgling studio to Rhode Island and help create 450 jobs. Only $50 million of that loan would go to the studio, with the rest being held in reserve. Rhode Island's lawsuit against 38 Studios alleged that even with the loan, the game developer "was undercapitalized by many millions of dollars" in its efforts to relocate from Massachusetts and complete its ambitious MMO.
In the dismissal filing, attorneys for 38 Studios reportedly "well knew" that 38 Studios needed the full $75 million to meet its obligations.
38 Studios released action RPG Kingdoms of Amalur: Reckoning in February 2012 and was in development of online game Copernicus, a title set in the same world of Amalur. The developer laid off its staff in May 2012 and filed for bankruptcy protection the following month.