Schilling lawyer says new documents contradict charges in EDC’s suit over 38 Studios’ collapse

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PROVIDENCE, R.I. – New documents directly contradict the allegations against former Red Sox pitcher Curt Schilling in a lawsuit that Rhode Island’s economic development agency filed over the collapse of his video game company, his lawyer said Friday.

Speaking after a brief hearing in the case in Superior Court, Sarah Heaton Concannon said that documents she recently received “contradict the allegations of the complaint” and show they’re baseless. The documents had previously been withheld because lawyers for the Economic Development Corp. maintained they were privileged.

The EDC, which has been renamed the Rhode Island Commerce Corp., agreed in 2010 to back a $75 million loan for Schilling’s startup, 38 Studios, but the company ran out of money last year and filed for bankruptcy. Rhode Island is now responsible for some $90 million related to the transaction; the suit is an attempt to recover some of what the state stands to lose.

Concannon did not say what the documents contain and has maintained all along the charges are baseless. Schilling has called the lawsuit political.

The EDC’s lead attorney on the case, Max Wistow, was not in court and was not immediately available to comment.

Schilling is among 14 defendants named in the suit, which alleges fraud, misrepresentation and breach of fiduciary duty, among other things. It says the defendants misled the EDC board into approving the deal.

In court Friday, William Dolan, an attorney for defendant Robert Stolzman, a former lawyer for the EDC, told the judge there are still “substantial disputes” over documents being withheld on the grounds of privilege.

Another attorney for the EDC, Stephen Sheehan, said the plaintiff’s lawyers submitted a log of documents about a year ago that it believes it has the right to withhold and that the defendants have had plenty of time to raise objections.

Sheehan said he expects his side’s depositions to be done in April. Among those who have been deposed are former EDC Executive Director Keith Stokes and Deputy Executive Director Michael Saul, who each provided out-of-court testimony over two days.

Schilling’s deposition has not been scheduled. Sheehan said Friday he did not know when it would take place.

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