When Curt Schilling makes the news these days, it’s usually either because he said something questionable on the internet, or it’s about his failed video game studio, 38 Studios.
Now, Associated Press is reporting that Schilling and the other studio execs have reached a settlement with the Rhode Island Commerce Corp for $2.5 million, which will be paid by the studio’s insurance company, pending judge approval.
The studio failed after making just one game – Kingdoms of Amalur: Reckoning – and attempting to make an MMORPG. The studio had accepted $75 million from Rhode Island to move the studio there with the promise of creating jobs, but shortly after, the company was laying off staff and filing for bankruptcy. Rhode Island sued the studio alleging fraud, stating the board who approved the loan was misled into believing the studio had access to more funding than they said they did.
Since then, it’s been one suit after another as the state attempts to recoup what they’ve lost. Successful settlements with two law firms as well as Wells Fargo and Barclays Capital have netted the state over $40 million, and this newest settlement brings it up to about $45 million.
So why not take Schilling himself and his executives to trial?
Lawyers for the Rhode Island Commerce Corp said in court documents that this case is “highly unusual” in that it “makes no economic sense whatsoever” to take them to trial. They said that the defendants, even if taken to trial, wouldn’t have the money to make good on the judgment. Schilling has said that he spent $50 million and even sold off a bunch of his stuff to try to pay off creditors.
At this point, Rhode Island taxpayers are still responsible for about $28 million of the bonds from the loan.