Schilling asks the judge to throw out lawsuit about $75 million loan
The filing seeking dismissal says Schilling and the other 38 Studios defendants - the former chief executive and financial officers and the board chairman - repeatedly disclosed the company's financial needs to Economic Development Corp. officials. It notes that the initial lawsuit says Stokes and others at the agency, including two law firms working for it, knew 38 Studios needed the full $75 million, but that it was getting only about $50 million because some was to be kept in reserve.http://hosted.ap.org/dynamic/stories/U/US_SCHILLINGS_GAMING_COMPANY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT
"Given the EDC's admissions concerning 38 Studios' disclosures to the EDC's executives, attorneys and financial advisor, it is impossible for the EDC simultaneously to claim that the 38 Studios defendants supposedly defrauded the EDC," the filing says.
The filing says the economic agency's board "well knew" the amount 38 Studios was getting wouldn't be nearly enough to fully finance the game. The resolution approved by the board says the estimated cost of the game's production is "in excess of $125 million."
The filing also says the agency's lawsuit doesn't prove anyone at 38 Studios knowingly made false statements to the agency.