Factor 5 accused of fraud by staff

By Robert Purchese Published 18 June, 2009

Claiming some sort of switcheroo.

Former staff at Lair developer Factor 5 have accused their old employer of pretending to be bankrupt.

"We allege in the suit that Factor 5 and its three founders fraudulently transferred assets, including source code and other intellectual property to Blue Harvest, which is now known as White Harvest," said the plaintiffs' lawyer James Smith, according to Gamasutra.

"We believe and have alleged in the complaint that Factor 5 and White Harvest are essentially the same company, being run by the same people, being represented by the same sets of lawyers, with all the same management and ownership and control, performing all the same work that they were doing at Factor 5, just now with a new name and a new address."

The former staff seek USD 900,000 in damages.

Factor 5, which also developed the Star Wars: Rogue Squadron games, closed in May. The studio claimed the bankruptcy of publishing partner Brash Entertainment late last year left bills too steep for Factor 5 to cover.

Picture of Robert.

About Robert Purchese

Bertie is Eurogamer's Senior Staff Writer. When he's not hunting down news stories he's often found playing with his kids or gabbling about fantasy games and strange online worlds.

Read more articles from Robert by visiting the Robert Purchese archive page.

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