Skybound Games Faces $4 Million Lawsuit From iam8bit Over Fraud Claims

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Okay, so I just heard some really concerning news about the studio behind the upcoming Walking Dead game! Apparently, iam8bit, a company known for cool collectibles and game publishing, is suing Skybound Game Studios. They’re claiming Skybound committed fraud, broke their contract, and even stole some of their original designs! It’s a serious situation and the case is now being handled by the courts in Los Angeles. It’s a bummer to hear, especially since I was really excited about this game.

According to the legal filing, Skybound hasn’t adequately addressed financial inconsistencies that occurred during their partnership with iam8bit. As a result, iam8bit is seeking significant compensation from Skybound.

Skybound Faces Allegations of Financial Misconduct

In April 2021, Skybound Game Studios and iam8bit began working together, but according to a recent complaint, Skybound hasn’t provided the required monthly financial reports. The complaint also alleges that Skybound inflated expense reports with ‘fake’ costs totaling millions of dollars.

Despite bringing in an independent auditor to review the situation, Skybound still couldn’t provide a clear explanation of their finances.

In addition to financial issues, iam8bit alleges that Skybound Games excluded them from a deal concerning Stray, the popular indie game released on PlayStation in 2022. Specifically, iam8bit claims Skybound used their original designs in marketing materials to obtain a separate agreement for a Nintendo Switch version of the game.

Some claim Skybound unfairly used confidential information and copied iam8bit’s creative work to promote their own products.

iam8bit’s lawyers will now pursue financial compensation, request changes to prevent similar issues in the future, and seek reimbursement for their legal costs.

Skybound Games has refused to comment on the lawsuit thus far.

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2025-12-06 11:18