Trustee Could Bring More Claims in 38 Studios Case
PROVIDENCE, R.I. (AP) — The 38 Studios bankruptcy trustee wants to explore opening a second legal front in the bid to recoup losses from Rhode Island’s failed $75 million investment in former Red Sox pitcher Curt Schilling’s defunct video game company.
The Economic Development Corp. last week voted to allow the trustee to use up to $150,000 in bankruptcy funds to investigate potential claims against former officers and directors at 38 Studios.
The EDC already is suing Schilling and some of its former officials. The suit claims the EDC board was misled into approving a $75 million loan guarantee for the company in 2010.
38 Studios went bankrupt last year. The state is responsible for $90 million in outstanding debt.
A Schilling attorney has called the EDC’s claims baseless.