Gaming collectible company iam8bit has filed a lawsuit against Skybound Game Studios, alleging fraud and breach of contract. The suit centers on their partnership for distributing physical copies and merchandise for the popular cat simulator game, Stray. iam8bit claims Skybound engaged in deceptive practices, including padding expenses and using confidential information to undermine their agreement.
Key Takeaways
- iam8bit is suing Skybound for over $4 million in damages.
- The lawsuit alleges fraud and breach of contract related to the distribution of the game ‘Stray’.
- iam8bit claims Skybound used insider information to cut them out of a Nintendo Switch physical edition deal.
The Core of the Dispute
The legal battle stems from a multi-year partnership between iam8bit and Skybound, which involved the distribution of physical editions and merchandise for the 2022 hit game, Stray. While Stray’s developer BlueTwelve and publisher Annapurna Interactive are not central to this lawsuit, Skybound and iam8bit were responsible for handling the physical PS5 release and related items like the game’s vinyl soundtrack.
According to the lawsuit, Skybound allegedly failed to provide agreed-upon monthly financial reports and included millions of dollars in fabricated expenses. This alleged financial misconduct forms a significant part of iam8bit’s claim for damages exceeding $4 million.
Allegations of Undermining Partnership
A major point of contention involves the subsequent Nintendo Switch physical edition of Stray. iam8bit asserts that Skybound exploited confidential information, including details of iam8bit’s royalty split with Annapurna, to secure this distribution deal independently. Furthermore, iam8bit claims Skybound repurposed marketing materials created by iam8bit to promote the Switch version, from which iam8bit would receive no revenue.
Background of the Companies
iam8bit is known for its specialization in boutique, collector-focused physical game editions and merchandise, similar to other companies like Limited Run Games. Skybound Game Studios is a subsidiary of Skybound Entertainment, a larger media company chaired by Robert Kirkman, the creator of The Walking Dead comics.
