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38 Studios court case begins, state has an 'avalanche' of evidence to back claims

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The lawsuit against Curt Schilling's game company, 38 Studios, began today with opening arguments from both sides, Providence Journal reports.

In June of last year, 38 Studios declared bankruptcy after missing payments to the state on its $75 million loan. The developer then laid off its entire staff and shut down. Rhode Island is currently suing the now defunct company on the grounds that it knew it would fail and did not inform the state.

The validity of the state's case is currently in discussion. According to Max Wistow, an attorney for the Rhode Island Economic Development Corporation, which backed 38 Studios' loan, the state has an "avalanche" of evidence to back its claim.

Reports from last week indicated that 38 Studios is currently looking to sell assets related to its intellectual property Kingdoms of Amalur: Reckoning in an effort to pay off part of its $130 million debt. The identities of those interested in the property remain unknown.

You can read our full coverage on 38 Studios and its struggles from the last year in our StoryStream.