- Associated Press - Thursday, September 24, 2015

Hundreds of documents and tens of thousands of pages related to the lawsuit over Rhode Island’s failed $75 million deal with ex-Boston Red Sox pitcher Curt Schilling’s video game company 38 Studios were released Thursday.

The Rhode Island Economic Development Corp. lured 38 Studios to Rhode Island from Massachusetts in 2010. The company ran out of money and went bankrupt less than two years later. The economic development agency sued Schilling, executives at 38 Studios, its two top former officials and others that aided the deal, seeking to recover the money taxpayers lost.

Here’s a look at a few of the interesting revelations from the unsealed court documents:

- A meeting in July 2009, when Gordon Fox was House majority leader, indicates the deal was in its early stages nearly a year before state lawmakers passed the $125 million loan guarantee program used to give 38 Studios the money.

- Former House Speaker William Murphy said he was interested in touring 38 Studios in fall 2009, in part because he had been a Red Sox fan all his life and Schilling was a “Red Sox nation hero.”



- A March 2, 2010, email from Thomas Zaccagnino, a 38 Studios board member, to Fox, now House speaker, invites Fox to attend a fundraising event at Schilling’s four days later. Michael Corso, a lawyer who did work for 38 Studios, was copied on the email. It says: “It would give us an opportunity to chat with Curt again about RI… there is really an interest to do something in the state.”

- The governor at the time, Republican Don Carcieri, said he thought he was the one “giving the lead” about 38 Studios in March 2010. Attorneys for the defendants suggested that the fundraiser was actually a setup to have Schilling and Carcieri meet.

- In a March 23, 2010, email chain among major players in the deal, Schilling expresses concern that the media has learned of their meetings. “I am afraid this might compromise some major aspects of this deal going forward on many fronts,” Schilling wrote.

- Schilling invested more than $30 million of his own money in the venture but needed more capital in order to grow the business, according to the documents.

- Attorneys asked Corso whether Fox was compensated for passing the legislation and whether Schilling gave him signed baseballs for his help. He didn’t answer.

- Corso was also asked in his deposition whether he received more than $2 million in fees in connection with the company’s move to Rhode Island and the EDC loan transaction, and whether he received an equity stake in 38 Studios. He replied “Fifth Amendment privileges” to both questions.

- Democratic Gov. Gina Raimondo was partner at a venture capital firm when she learned about the state’s interest in 38 Studios. She said her partner said it’s “shopped.” Raimondo said in her deposition: “He probably said, oh, that’s been shopped all over the place and everyone’s passed.” Raimondo emailed Keith Stokes, then the agency’s executive director, to warn him about that red flag.

- Former Democratic Gov. Lincoln Chafee, now a presidential candidate, referred to his successor, Raimondo, in his deposition as “Ms. Wall Street.” He accused her of taking a “political cheap shot” for questioning how the investment in 38 Studios was monitored.

- Stokes was asked about how he believes Chafee stood in the way of attempts by 38 Studios to restructure its debt and raise additional capital from 2011 to 2012. He said, “My recollection is, is that Governor Chafee was inconsistent in providing guidance and assistance and direction for the company.”

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