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(Bloomberg) – In 2012, former baseball player Curt Schilling abruptly shut down his video game company 38 Studios without giving around 400 employees their last paycheck. Nine years later, many of these people are finally seeing money, even if it is only a fraction of what was owed to them.
Many of the staff who worked for the volatile game developer in its Rhode Island or Maryland offices will receive a payment of around 14% or 20%, respectively, of what the company owed them before they ran out of money. and to be forced to close. on May 24, 2012, according to bankruptcy documents.
After nearly a decade of litigation in a Delaware court, final payments were decided in June and recently began to be distributed to staff. A former 38 Studios employee told Bloomberg News he received his check this week. Other employees said their checks were sent to old addresses, as many of them have moved multiple times for new jobs in the years since 38 studios closed.
Schilling founded 38 Studios in the twilight of his baseball career to create his dream game, an online role-playing game that would take on the popular World of Warcraft. But his inexperience and mismanagement led the studio to collapse before the game was over.
In 2011, 38 studios moved from Massachusetts to Rhode Island in an elaborate deal in which the state government guaranteed a $ 75 million loan to support several years of development. But 38 Studios received only around $ 50 million and spent lavishly, leading Schilling’s company to run out of money in just a year.
When the business closed, some employees were forced to pay bills they believed 38 Studios had processed. A few found themselves struggling with mortgages on old Massachusetts homes that the company had promised to take until sold. Some employees donated canned food and other supplies to help those who were suddenly strapped for cash.
© 2021 Bloomberg LP
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