Iam8bit is to Sue Skybound Games

Drama

09 December 2025 13:53

Merchandise company iam8bit has taken publisher Skybound Games to court, accusing the firm of fraud and several contract violations. The lawsuit was filed in the Superior Court of California in Los Angeles County.

According to the complaint, iam8bit says Skybound ran what it describes as a long term accounting scheme. The filing states that Skybound did not deliver the monthly financial reports required in their agreement and also added millions of dollars in expenses that iam8bit believes were not real.

The company says it hired an outside auditor to review Skybound’s financial statements. That review cost about 4 million dollars.

The lawsuit also claims Skybound interfered with a deal related to the popular indie game Stray. iam8bit says Skybound used confidential royalty information from its work with Annapurna, the game’s publisher, to cut iam8bit out of a deal for the Nintendo Switch version. The suit also accuses Skybound of copying iam8bit’s marketing designs.

In the court filing, cited by Law360, iam8bit says Skybound made a secret agreement with Annapurna and hid it from its partner. The complaint argues that Skybound misled iam8bit while planning to take over the work and use its creative materials.

The two companies began working together in April 2021 to produce physical editions of indie titles.

Founded in 2005, iam8bit is known for video game vinyl soundtracks, clothing, art, and other collectibles. The company also runs the Play Days event at Summer Game Fest and launched its iam8bit Presents publishing label in 2022.

More:Fortnite Skin Costs $170

Tags: Iam8bit Skybound Games

Share:

Sources:

Report mistake Submit news

Related news

View All

Customers Sue Nintendo Alleging Double Recovery on Tariffs Through Price Increases and Government Refunds

TL;DR * Two customers have filed a class-action lawsuit in Washington alleging Nintendo intends to recover tariff costs twice: once...

Drama

Apr 23, 2026

Blizzard Wins Copyright Case Against Turtle WoW, Immediate Cease and Desist Ordered by California Court

TL;DR * The US District Court of California has ruled in favor of Activision Blizzard on all seven causes of...

Drama

Apr 22, 2026

Pragmata Sells 1 Million Copies in Two Days as Capcom's Long-Delayed Sci-Fi Game Exceeds Expectations

TL;DR * Capcom announced Pragmata sold 1 million copies worldwide in its first two days following its April 17 launch...

Drama

Apr 22, 2026

IWGB Files Legal Action Against Build a Rocket Boy Over Alleged Undisclosed Workplace Surveillance

TL;DR * The Independent Workers' Union of Great Britain has initiated legal action against MindsEye developer Build a Rocket Boy,...

Drama

Apr 22, 2026

Former Epulze Staff Allege Platform's Management Relaunched as Chaosground Without Paying Up to 100 Workers

TL;DR * Freelance Dota 2 observer Chun Kit Wong has publicly alleged that Epulze management sold the platform's assets to...

Drama

Apr 21, 2026

Iam8bit is to Sue Skybound Games

Drama

09 December 2025 13:53

Tags: Iam8bit Skybound Games

Merchandise company iam8bit has taken publisher Skybound Games to court, accusing the firm of fraud and several contract violations. The lawsuit was filed in the Superior Court of California in Los Angeles County.

According to the complaint, iam8bit says Skybound ran what it describes as a long term accounting scheme. The filing states that Skybound did not deliver the monthly financial reports required in their agreement and also added millions of dollars in expenses that iam8bit believes were not real.

The company says it hired an outside auditor to review Skybound’s financial statements. That review cost about 4 million dollars.

The lawsuit also claims Skybound interfered with a deal related to the popular indie game Stray. iam8bit says Skybound used confidential royalty information from its work with Annapurna, the game’s publisher, to cut iam8bit out of a deal for the Nintendo Switch version. The suit also accuses Skybound of copying iam8bit’s marketing designs.

In the court filing, cited by Law360, iam8bit says Skybound made a secret agreement with Annapurna and hid it from its partner. The complaint argues that Skybound misled iam8bit while planning to take over the work and use its creative materials.

The two companies began working together in April 2021 to produce physical editions of indie titles.

Founded in 2005, iam8bit is known for video game vinyl soundtracks, clothing, art, and other collectibles. The company also runs the Play Days event at Summer Game Fest and launched its iam8bit Presents publishing label in 2022.

More:Fortnite Skin Costs $170

Share:

Sources:

Report mistake Submit news