By Kimie Bunyasaranand
November 01, 2012

Curt Schilling Former pitcher Curt Schilling was sued by the state of Rhode Island over a loan guarantee that backed his failed video game company. (Jim McIsaac/Getty Images)

The state of Rhode Island sued Curt Schilling over the $75 million loan guarantee that backed 38 Studios, according to an AP report. Schilling founded 38 studios, a video game company, in 2006 (then called Green Monster Games) and it went bankrupt and ceased operations in May of this year.

The lawsuit was filed late Thursday morning and also named as defendants one-time officials with the state's economic development agency, the Economic Development Corp., who were involved in the deal. The state's governor, Lincoln Chafee said in a video message that the EDC board took legal action to "rectify  a grave injustice put upon the people of Rhode Island."

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