By Anthony Silva, WBZ NewsRadio 1030's New England Business Editor

BOSTON (CBS) – “Stunning” – that’s what one lawyer is calling the massive lawsuit filed by the state of Rhode Island against Curt Schilling and many others over the demise of his 38 Studios.

WBZ NewsRadio 1030’s Anthony Silva reports

Bankruptcy attorney David Reier at Posternak, Blankstein and Lund says the state is alleging that a number of advisors that were working for Rhode Island kept members of the Rhode Island Economic Development Corporation’s board in the dark about evidence that the $75 million loan guarantee would fail.

The complaint runs more than 100 pages. Reier says that the suit claims that the company’s own financial projections showed that the loan from the state would result in a capital shortfall of tens of millions of dollars in 2012, and that fiduciaries working for the state deliberately kept that information from RIEDC.

Also named in the suit are a major bank, a law firm in Rhode Island, and the former head of the state’s economic development corporation.

Reier thinks a settlement could be worked out before any testimony is offered in court.

In a statement, Schilling denies the charges and calls the lawsuit “political.”


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