Report: iam8bit sues Skybound, alleging fraud

Game Developer
Fri, 05 Dec 2025 19:24:23 +0000

iam8bit is suing Skybound Game Studios for alleged fraud, claiming Skybound provided inaccurate financial reports and engaged in a "multi-year accounting scheme." The lawsuit, filed in LA Superior Court, accuses Skybound of inflating expenses with fake line items and interfering with a promotional deal for the game Stray by misusing confidential information. Both companies partnered in 2021, with iam8bit also publishing games like Escape Academy.

2025-12-06 | Insider Gaming: Skybound Games Faces $4 Million Lawsuit From iam8bit Over Fraud Claims

Skybound Games is facing a $4 million lawsuit from iam8bit, alleging fraud, breach of contract, and theft of original designs. Filed in LA Superior Court, the lawsuit claims Skybound failed to provide agreed-upon financial reports and added false expenses. Additionally, iam8bit accuses Skybound of excluding them from a deal related to the game Stray and misusing their designs for promotional purposes. iam8bit seeks monetary damages and legal fees. Skybound has not commented on the lawsuit.

2025-12-07 | Eurogamer: iam8bit sues Skybound Games for $4m, claiming breach of contract and theft of designs

Iam8bit is suing Skybound Games for $4 million, alleging breach of contract, fraudulent expenses, and theft of designs related to a partnership formed in 2021. The lawsuit claims Skybound failed to provide required monthly reports and padded expenses with fake line items. Additionally, iam8bit accuses Skybound of using its promotional materials for the game Stray to secure a Nintendo Switch deal, cutting iam8bit out of the agreement.

2025-12-07 | PC Gamer: Gaming collectible purveyor iam8bit is suing publisher Skybound over alleged fraud related to cat sim Stray

Iam8bit is suing Skybound Game Studios for over $4 million, alleging fraud and breach of contract regarding their partnership on distributing Stray. The lawsuit claims Skybound failed to provide agreed-upon financial reports and inflated expenses with fake line items. Iam8bit accuses Skybound of using insider information to exclude them from a distribution deal for Stray's Nintendo Switch edition and misusing marketing materials created by iam8bit.