38 Studios litigation update planned for EDC

Associated Press

PROVIDENCE, R.I. (AP) — The board of Rhode Island's Economic Development Corp. is expected to consider possible litigation related to the state's $75 million loan guarantee to a failed video game company owned by former Red Sox pitcher Curt Schilling.

Board members are scheduled to meet Monday evening. The EDC hired an outside law firm in June to determine whether any third parties might be held liable for the 2010 loan guarantee.

38 Studios filed for bankruptcy in June, and the state is likely on the hook for $100 million related to the deal.

Gov. Lincoln Chafee said last week that a special litigation subcommittee, on which he sits, is exploring its options and there "could be litigation."