Skybound Game Studios has allegedly been involved in various fraudulent schemes for many years.
iam8bit, a company specializing in the publication of premium versions of video games, soundtracks, and collectibles, has filed a lawsuit against its former partner, Skybound Game Studios. The charges include fraud, breach of contract, misappropriation of designs, and accounting fraud.
The lawsuit was filed in the LA Superior Court. According to the complaint, the partnership between the companies began in April 2021, but Skybound allegedly engaged in accounting fraud for many years: it inflated expenses by millions of dollars using false items, did not provide monthly financial reports as stipulated in the agreement, and did not even explain these items to an external auditor. iam8bit is seeking more than $4 million in compensation for these items.
Additionally, iam8bit accuses Skybound of disrupting a deal for promotional materials for the indie hit Stray (Annapurna Interactive). Allegedly, Skybound used confidential information about iam8bit's royalties to push the partner out of the deal for the Nintendo version of the game, and released "almost identical copies" of iam8bit's materials for marketing.
