The Rhode Island Economic Development Corporation announced it is filling a suit against 38 Studios. The suit relates to the company’s $75 million in loan guarantees given to the developer, and the suit accuses the managers of 38 Studios and anyone who signed off on the deal of fraud, negligence, conspiracy, larceny, and more.
Essentially, the suit says that 38 Studios’ directors and executives deceived the state about the risks, helped by the RIEDC’s own lawyers and financial advisers. Rhode Island claims that they should have known the $75 million was insufficient to relocate the company’s offices to the state and complete Project Copernicus.
“Litigation is often long and tedious. The filing of this complaint is only the beginning. I know therefore there still will be many unanswered questions as the legal process continues and if and when other information comes to light it will be appropriately addressed,” wrote Rhode Island governor Lincoln Chafee. “My message to Rhode Islanders is this: I know that you work hard for your paychecks, and for your tax dollars to be squandered is unacceptable. The Board’s legal action was taken to rectify a grave injustice put upon the people of Rhode Island. You have my commitment that I will continue fighting to protect the interest of all Rhode Islanders every day that I am Governor.”
