Phillies Former Pitcher Curt Schilling Settles in 38 Studios Lawsuit

Former Phillies and Red Sox pitcher Curt Schilling reached a settlement to end a lawsuit involving his failed video game studio. Schilling maintains there was no wrongdoing in his deal with the state of Rhode Island.

Rather than prolonging their legal battle, former Phillies pitcher Curt Schilling and his partners will settle their lawsuit with the Rhode Island Economic Development Corporation. The parties reached a $2.5 million settlement, a mere fraction of the near $75 million deal between Schilling’s failed video game studio, 38 Studios, and the RIEDC.

The mediator of the case, retired Superior Court Judge Francis Darigan, said the settlement is “a practical move on the part of the state.” Lawyers from RIEDC stated the case is “highly unusual” and “makes no economic sense” to bring to trial.

If the settlement is approved, Schilling will no longer be liable in the case and just one defendant will remain. So far, court settlements related to 38 Studios’s bankruptcy total nearly $45 million.

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38 Studios moved from Massachusetts to Rhode Island in 2010 after receiving a $75 million loan guarantee from the RIEDC. However, the game studio went bankrupt after just two years. Schilling said in a June 2012 interview with WEEI-FM that he invested and lost more than $50 million in 38 Studios.

Schilling also stated that he took no salary from the studio and lost nearly all the money he saved from baseball, but that he was “not asking for sympathy.” According to Baseball Reference, Schilling earned $114,158,000 in his career.

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In a 97-page complaint, the RIEDC alleged Schilling and his partners “engaged in financial misconduct, neglect, fraud, and conspiracy to deceive officials about the company’s prospects.” WPRI reported in May of 2014 that a court document shows a top official from the studio implored other company insiders to hide the company’s precarious finances. Thomas Zaccagino, lead director of 38 Studios’ board at the time, said in an email, “I really do not think we should highlight the fact that we might be under capitalized…won’t go over well with the staff or board.”

However, Schilling maintains that there was no wrongdoing on his part. On Twitter, Schilling affirmed he will tell his side of the story, but when that will happen is uncertain. He will have to wait for the settlement to be approved before he can discuss the case.

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Schilling’s economic woes only continued when ESPN fired him after making multiple controversial remarks on various current issues. He has since signed a contract to do an online radio show.