38 Studios No Longer Faces Federal Charges
In the past few months, 38 Studios has faced some hard times. After going bankrupt in May following a $75 million loan from the state of Rhode Island, federal criminal charges were brought up against the developer for essentially forcing the state to face a $100 million debt. The resulting charges have just been dropped, states The Washington Post, meaning the developer has at least one less raincloud to worry about.
The Associated press was just told by Jim Martin, spokesman for U.S. Attorney Peter Neronha, that “No further federal action is planned at this time.” However, the investigation is still open, according to head of Rhode Island State Police Col. Steven O’Donnell.
It’s unfortunate to see a developer fall so hard upon its knees. Hopefully, 38 Studios will be able to pull out of this situation without too much damage; the outcome looks grim, but at least it got a little brighter with the federal charges being dropped.