The slate of Rhode Island has filed a laws suit against Curt Schilling and his firm, 38 Studios LLC aiming to recover some of the $75 million in loans that were guaranteed by the government in order to attract the company from Massachusetts.

The suit has been filed in the Rhode Island Superior Court and includes Schilling, several 38 Studios executives, the company's bankers and Keith Stokes, the former director of the Rhode Island Economic Development Corp. Mr. Stokes had recently resigned from his job earlier over the matters relating to the 38 Studios deal.

The state accuses the company and others of financial misconduct, neglect, fraud, and conspiracy to deceive officials about the aspects of the company in the lawsuit. The suit also claims that the Stokes was also involved in is misleading the board of Economic Development Corp in order to ensure that the secure the bonds for 38 Studios.

"Defendants knew or should have known, but failed to inform the EDC board, that 38 Studios was destined to fail according to 38 Studios' own financial projections," the state said in the lawsuit. The lawsuit was filed after the state's Economic Development Corporation took a unanimous decision to take legal action against the company and others.