The Providence Journal has reported that the Rhode Island’s lawsuit against the people involved in 38 Studios’ loan deal has started in court today, with opening arguments from both sides on the legitimacy of the state’s case.
In May of last year 38 Studios laid off all its 380 employees and closed its office doors. Shortly after, the publisher filed for bankruptcy after missing payments to the state for its $75 million loan. Rhode Island is now suing the ex-developer on the grounds that it did not inform the state, even though it knew it would fail. According to Max Wistow, an attorney for the organization who backed 38 Studios’ loan, Rhode Island Economic Development Corporation, the state has an “avalanche” of evidence to support its case.
Reports surfaced earlier this week that 38 Studios is looking to sell Kingdoms of Amalur: Reckoning and associated assets to pay off part of the $130 million debt. It remains unknown what the value of the assets will ultimately be but Providence lawyer Richard J. Land said that “there is interest in the assets.”