Providence Local News

 

Parties Expected in Court in EDC's 38 Studios Suit

Parties Expected in Court in EDC's 38 Studios Suit

PROVIDENCE, R.I. (AP) _ Lawyers for Curt Schilling and former 38 Studios executives are expected back in court for the first hearing since a judge ruled the majority of a lawsuit over the video game company's collapse may proceed.

A pre-trial hearing is scheduled for Friday morning before Superior Court Judge Michael Silverstein.

Silverstein ruled last month that most of the Economic Development Corp.'s suit over the $75 million state loan guarantee for 38 Studios may go forward. It alleges fraud, negligence and breach of fiduciary duty, among other things.

The EDC in 2010 approved the loan guarantee for 38 Studios to lure it to Providence from Massachusetts. The company filed for bankruptcy last year.

The state is now on the hook for about $90 million related to the deal.


 

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