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Rhode Island sues ex-Red Sox pitcher Curt Schilling over loan guarantee

Published November 1, 2012 7:09 pm

This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Providence, R.I. • The state of Rhode Island's economic development agency on Thursday sued former Red Sox pitcher Curt Schilling and some of its own former officials in connection with a $75 million loan guarantee to his failed video game company.

The suit was filed in Rhode Island Superior Court four months after 38 Studios filed for bankruptcy after a spectacular collapse. The board of the Economic Development Corp. in 2010 lured 38 Studios to Providence from Massachusetts with the loan guarantee.

In addition to Schilling, who founded the company, the suit names former EDC Executive Director Keith Stokes; Michael Saul, a former top official with the EDC who worked closely on the deal; and two law firms that also worked with the agency.

Gov. Lincoln Chafee said the EDC board authorized the legal action in an attempt to recoup some of the state's money.

The Associated Press