Skybound Game Studios, the gaming subsidiary of Robert Kirkman’s Skybound Entertainment, is facing a sizeable lawsuit filed by iam8bit. This lawsuit alleges fraud, a breach of contract, and theft of original designs, and it was taken to the LA Superior Court for consideration.
The filing claims that Skybound has failed to explain financial discrepancies logged over the years of the partnership between the two firms, amongst other things. This has left iam8bit to file a considerable claim against Skybound.
Skybound Faces Allegations of Financial Misconduct
Skybound Game Studios and iam8bit entered into a partnership in April 2021, and according to the complaint, Skybound has always failed to deliver monthly financial reports as agreed and has added ‘millions of dollars in fake line items’ to expense reports.
It was explained that an impartial auditor was introduced to the debate, and even then, Skybound couldn’t explain the finances.
Beyond financial woes, iam8bit has accused Skybound Games of cutting it out of a deal related to Stray, the dystopian indie smash hit that launched on PlayStation in 2022. It was claimed that Skybound used original designs created by iam8bit for promotional purposes to secure a separate deal for a Nintendo Switch release of the game.
It has been argued that Skybound has exploited trade secrets while scalping iam8bit’s creative output for marketing purposes.
This leaves iam8bit’s legal team to seek monetary damages, some kind of punitive reform, and compensation for legal fees.
Skybound Games has refused to comment on the lawsuit thus far.
Do you think Skybound Games should be held accountable to this extent if found guilty of these financial discrepancies? Let us know on the Insider Gaming Discord server.
For more Insider Gaming coverage, check out the news that EA has no plans for a new Dead Space as the series sits on ice
Grant has been gaming for 30+ years and in the industry for 10+. You'll probably find him playing a post-apocalyptic game or an extraction shooter somewhere.
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