38 Studios lawsuit reaches partial settlement

The lawsuit regarding the accusation that Curt Schilling and his business partners lied about 38 Studios' financial prospects has reached a partial settlement of $12.5 million with the state of Rhode Island.

A former Red Sox pitcher, Curt Schilling created 38 Studios which went on to make the RPG Kingdoms of Amalur: Reckoning. But the studio's primary mission was the development and launch of an expensive MMO codenamed Project Copernicus, which never saw the light of day, but managed to drive the company to bankruptcy.

The lawsuit claims that Schilling, several banks and former Rhode Island Commerce Corporation officials lied about 38 Studios' financial prospects to secure $75 million in loans from the state.

This particular settlement will come from a former RICC executive dirctor, a former RICC deputy director and the agency's former outside council, who have agreed to pay $12.5 million for its role in the alleged deception, as The Boston Globe reports. 

All this leaves Schilling himself, along with other 38 Studios executives and several financial companies faced with the potential to have to pay a further $72 million.