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38 Studios fiasco leads Rhode Island to amend state law
38 Studios fiasco leads Rhode Island to amend state law
January 31, 2014 | By Alex Wawro

Yesterday the Rhode Island Senate unanimously approved legislation written specifically to encourage a settlement in the state's ongoing lawsuit against those it holds responsible for the mismanagement of a $75 million state loan to Curt Schilling's now-defunct 38 Studios, according to a report from the Providence Journal.

The report goes into excellent detail about the state's ongoing lawsuit against former 38 Studios head Curt Schilling and 13 other defendants, including former state employees, and is worth reading in full.

Put simply, this 38 Studios bill will amend state law to allow a defendant in the 38 Studios lawsuit to independently agree to a settlement with the prosecution, without thereafter being liable for any judgment made by the court against the other defendants.

"It changes the joint torfeasors law in the state of Rhode Island," Senate Judiciary Committee Chairman Michael McCaffrey reportedly explained on the state Senate floor yesterday. "Currently, if you settle with one defendant, and there are multiple defendants and there is a judgment, then that one defendant who settles could still be responsible for the judgment."

This bill will reportedly only apply to the 38 Studios case, and must now pass through the Rhode Island House of Representatives before it can be signed into law.

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Maria Jayne
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Sometimes I feel sorry for Curt, whenever you see any mention of this story his name comes up. Of course there were other people there who knew the business at the very least equally well, unyet nobody even mentions them by name.

If you really want to find the people responsible, it's far more likely to be those who remain invisible. Only someone aware of what they were doing could so adeptly hide in plain sight.

Dan the gaming Guy
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This appear to be an unbalance of production and creative IMO. Almost all game projects require great creative to be successful, but without strong producers/PM's driving ideas to completion (even if this effort is lead by a creative), this is what happens. 75m in the hole and not much to show for it =(

So much could have been done with that money. Poor curt probably trusted the wrong people or was too involved with the creative....

Matt Ployhar
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@Maria & Dan - completely agree. I wish there was more accountability towards those he trusted/hired to do their jobs; yet couldn't have failed him more than they did. Ironically; some of those he did hire, were very good people which makes it an even bigger wtfbbq moment. It's a classic, dare I say cliche mistake, when their eyes got way bigger than their stomachs. Just sad all the way around.

Ben Sly
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Going off of memory from that article, I was under the impression that Curt Schilling routinely didn't listen to those he hired - and when the situation got too desperate to ignore, he became too committed to his grand vision to be receptive to anyone's doubts regarding it.

That being said, Curt Schilling is the prime scapegoat in this, and there is almost certainly there was more to the debacle than his self-imposed blindness. Those who warned him were likely to have been saying things that they'd know he'd ignore, and should have done more to get themselves heard; but that is something very hard to do in that high-pressure groupthink environment, both in terms of convincing oneself to do so and in terms of being successful.