Curt Schilling, founder of the now defunct 38 Studios, and three co-defendants have agreed to a preliminary settlement with Rhode Island over the bankruptcy of the development studio.
Under the agreement, Schilling and the three other defendants, Thomas Zaccagnino, Richard Wester and Jennifer MacLean, will not be personally responsible for paying the $2.5 million, instead, it will fall on the insurance company that 38 Studios used, Starr Indemnity and Liability Co.
The payment will be made to The Rhode Island Commerce Corp. who asked the court to approve the settlement after their lawyers determined it could not expect to recover more even if they won against 38 Studios.
In court filings, both parties commented
This is a highly unusual case in which it makes no economic sense whatsoever for the parties to proceed to trial rather than proceed with the proposed settlement
If the court agrees to the settlement, The Rhode Island Commerce Corp.will have secured $45 million in litigation against 38 Studios.
In the settlement, the defendants did not confirm liability and the agreement doesn’t constitute an admission of wrongdoing.
38 Studios was founded in 2006 in Maynard, Massachusetts as Green Monster Games by the baseball player, Curt Schilling. It was later rebranded after Schilling’s jersey number. It entered into a deal with Rhode Island in 2010 to move to the state in exchange for $75 million. The studio made one game, Kingdoms of Amalur: Reckoning which launched in February 2012 with Electronic Arts publishing the game. Four months after release, the developer went bankrupt which left Rhode Island taxpayers with the bill.
Under the agreement, the state’s taxpayers will still owe approximately $28 million.
Kingdoms of Amalur: Reckoning is available for PC, PlayStation 3 and Xbox 360.