iam8bit has filed a lawsuit against Skybound Game Studios in Los Angeles Superior Court, alleging fraud, breach of contract and misuse of original creative materials. Skybound Game Studios is part of Skybound Entertainment, which is chaired by Robert Kirkman, known for creating the original comic series The Walking Dead. Requests for comment were sent to Skybound, but the company had not responded at the time of publication.
The company functions as both a game producer and a merchandise business that distributes vinyl soundtracks and related products, and subsequently entered into a partnership with Skybound Game Studios in April 2021. In the complaint, iam8bit states that Skybound failed to meet its responsibilities for monthly financial reporting. The filing alleges that Skybound engaged in an extended accounting scheme and that multiple financial line items included in the reports were inaccurate.
As per the complaint, iam8bit claims that Skybound added what it describes as fabricated expenses totaling several million dollars. The company states that it requested detailed explanations for the entries but did not receive satisfactory clarification. The complaint adds that even a third party audit did not result in clear information about the disputed line items. iam8bit is seeking more than four million dollars in damages related to the financial reporting concerns.
The lawsuit also includes a claim that Skybound excluded iam8bit from a separate commercial agreement regarding the game Stray. iam8bit asserts that it designed and developed promotional materials for the launch of Stray on PlayStation and Xbox platforms. The filing states that Skybound used confidential information from that work to negotiate a separate arrangement for the Nintendo version of the game. It further alleges that Skybound employed promotional concepts that were nearly identical to iam8bit’s original materials.
The complaint lists several causes of action. These include breach of contract, fraud, conversion, unjust enrichment and misappropriation. iam8bit’s legal team is requesting monetary compensation, punitive damages and recovery of attorneys fees. We will keep you updated with any new development on this story.
