Curt Schilling’s company, 38 Studios, defaulted on a loan to the State of Rhode Island, a product of his hubris and lack of business experience. Was it more than that? Well, the State is now suing Schilling and a host of other defendants, including other officers in his company, companies responsible for advising the State’s Economic Development Corporation, and even its counsel, for the loan.

The allegations are that Schilling and others failed to disclose risks, and knew of the bleak economic conditions with the company and that they would have trouble even with the State’s $75 million economic development loan.

It’s not surprising that a lawsuit has been filed given the amount of money involved. Basically, the previous Governor wanted Schilling’s company (big star name, etc.) and it sounds like not everyone tied with the government did their due diligence. Current governor Lincoln Chafee opposed the loan initially, and now they are seeking to recover. Whether they can legally point the finger at Schilling and others for misleading the state remains to be seen.

[photo via US Presswire]