The Big 38 Studios Document Surprise is No Deposition from Curt Schilling

Thursday, September 24, 2015

 

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Maybe the biggest surprise is that among the more than 10,000 pages of documents, 60 individuals deposed and 500 plus exhibit documents, there was no deposition by former Red Sox Pitcher and 38 Studios founder Curt Schilling in the documents released today. And, according to sources, Schilling was never deposed.

Schilling has been at the eye of the storm of this controversy. in May of 2012, then-Governor Lincoln Chafee criticized Schilling for his management of the company and in turn, Schilling said Chafee's unwillingness to help rescue the company with "promised" film tax credit revenue is what killed 38 Studios.

As GoLocal reported in 2012:

Former Red Sox star Curt Schilling made more than $114 million in salary pitching in the Major Leagues, but by 2009 he had had invested “the majority of money I’ve earned in my life” in his video game company.

Schilling’s remarks came in a Harvard Business School case study that was published in March 2010, just a few months before he reached an agreement with the state to move the company to Rhode Island in exchange for $75 million loan guarantee.

"I have put the majority of the money I've earned in my life on the table," Schilling said. "If I make another investment, I will have crossed the point of no return from a personal investment and company standpoint."

More recently in October of 2013, GoLocal was first to report of Schillings and others aggressive response to the State of Rhode Island's law suit.

In a blistering response to the State of Rhode Island's lawsuit over 38 Studios default on $75 million in state funding, the defendants led by former Red Sox great Curt Schilling, then-Economic Development Corporation Director Keith Stokes, and prominent Providence law firm Adler Pollock & Sheehan denied the charges, attacked the State's suit -- and blamed Governor Lincoln Chafee.

GoLocalProv secured 440 pages of responses filed in Superior Court. These answers filed by the defendants respond to the State of Rhode Island's suit initially filed on November 1, 2012 by Max Wistow, the State's attorney.

The collapse of 38 Studios and the corresponding lawsuit were global news due to the celebrity status of the founder of the company and the amazingly quick collapse of the company that burned through $75 million in state funds in less than 18 months.

Later in the article by GoLocal News Editor Kate Nagle:

In his response, Schilling "admits that 38 Studios disclosed the Company's financial projections and financial needs to the EDC's representatives, the EDC and its representatives understood that 38 Studios capital requirements to complete production of Copernicus (not including the launch of Copernicus) were at least $75 million, the EDC and its representatives understood that the net proceeds to be lent to 38 Studios would be less than $75 million, and the EDC and its representatives knew that 38 Studios would need funding in addition to the net proceeds of the EDC's loan."

Moreover, Schilling denies the assertion made by the State that no members of the EDC Board "were experts in law, lending, video gaming, or economic development." 

Schilling, former Red Sox great and founder of 38 Studios, was financially crushed by the failure of his gaming company and recently said in an interview with the Boston Globe that he suffered a heart attack due to the stress tied to the collapse of the company and the loss of tens of millions of dollars of his own personal wealth.

 

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