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38 Studios founder Curt Schilling sued by bank for $2.4 million

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Retired Red Sox pitcher sued for millions in unpaid debts

Project Copernicus
Project Copernicus

38 Studios founder Curt Schilling sued by creditors for $2.4 million.

One of 38 Studios' creditors is trying to recover some of the money it loaned to the bankrupt studio by suing its founder, Curt Schilling.

Citizens Bank filed suit in Massachusetts Superior Court last week – the same day 38 Studios filed for bankruptcy – seeking repayment of $2.4 million from Schilling. According to the suit, Schilling personally guaranteed a $2 million line of credit and a $350,000 credit cart account with the bank which has not been paid.

"Schilling is liable to the Bank in the total amount of $2,394,240.40" plus fees, interest and attorney costs, according to Citizens' suit. "Schilling has failed and refused, and continues to fail and refuse, to satisfy the outstanding indebtedness," reads the complaint.

Citizens also names financial firm Morgan Stanley in its suit. The bank is attempting to recover funds from Schilling's personal accounts with the firm.

Earlier this week, Rhode Island State Police, FBI and U.S. attorney's office issued subpoenas as part of an investigation into 38 Studios' finances.

38 Studios was founded by retired Red Sox pitcher Curt Schilling in 2006. The studio released one game, Kingdoms of Amalur: Reckoning, in February and was working on another, the online role-playing game Project Copernicus, before it collapsed. After missing a loan payment to the state of Rhode Island and failing to make payroll in May, 38 Studios laid off all its employees.

Schilling said in an interview with The Providence Journal that he stands to lose up to $50 million of his own money in the wake of 38 Studios closure, including $12 million in loans and $38 million of his own money.