RI suspends unpaid wages probe at 38 Studios
PROVIDENCE, R.I.—The Rhode Island Department of Labor and Training has suspended its investigation into unpaid wage claims at former
Department spokeswoman Laura Hart said Thursday that the probe was suspended because 38 Studios has filed for bankruptcy protection.
The company listed owing at least $2.5 million to employees in Rhode Island and Maryland in its bankruptcy filing.
38 Studios laid off its entire workforce last month. The layoffs came soon after the company was late in making a $1.1 million payment to the Rhode Island Economic Development Corp.
The state was investigating whether 38 Studios stopped paying workers three weeks before the layoffs.
38 Studios was lured to Rhode Island from Massachusetts in 2010 by a $75 million loan guarantee from the state.