Okay so I've done some digging and found my original sources.
As Gamerace said, Factor 5 US is gone for good and many of its prominent members, including Eggbrecht and others, have recently formed TouchFactor which is a developer of games for social platforms and mac and PC. As you can see from their website and these pieces of concept art that were found by NeoGaf they are developing social games for the near future I'm afraid...
Factor 5 GmbH is apparently trying to reopen under the name Factor Y ,probably because of disputes over the legal ownership of the previous name. As can be seen by this job listing from January the German branch is still interested in developing games.
via NeoGaf:
"Factor 5 has over 20 years in the development of console games in Germany and the USA. Our affinity for technology and hardware will be appreciated by many partners around the world especially.
Junior Software Developer (m / f)
Factor 5 looking to strengthen the R & D development teams in the Cologne / Germany a junior software developers.
Responsibilities:
Development of technologies for all current consoles, handhelds and PCs
Your profile:
You have a degree in computer science or a comparable training or have acquired knowledge in practice.
Your use of C and object-oriented design is excellent and you know the STL and TR1.
But have no fear of assembler.
You have a basic understanding of the problems in the multi-core programming.
You can familiarize themselves independently in new technologies.
They show initiative and be a team player.
They respond flexibly to project adjustments and are able to complete your tasks with the times.
They speak fluent English.
Desirable experiences with non-Microsoft platforms
It offers an interesting challenge with room for initiative at different projects in an international company.
We look forward to receiving your application, indicating a possible start date and salary expectations.
Factor 5 GmbH
Achim Moller
Otto-Hahn-Str. 7
50 997 Cologne
de@factor5.de
www.factor5.de"
This job listing has since gone down and reappeared in German under the name Factor Y, as can be seen here.
(taken from the same thread on Neogaf)
Currently it isn't clear if anybody from the original company (besides Achim Mollar who was in charge of the German branch and Rene Henke) will be moving on to Factor Y, but at least from the job listing it is clear the new company is looking to develop games for platforms other than Windows and Xbox, which could be good news for console owners but since we don't know anything about the people who will be working there, there is nothing to get excited about either.
Finally, as can be seen here, the legal battle over the material Factor 5 was working on when it closed, as well as the unpayed salaries owed to its employees is still going on. There was a hearing originally scheduled in court for today but I don't know if anything has come out of that yet.
There was also a recent mention of a Turrican game for the 3DS by a former factor 5 musician, but this was quickly revealed to be no more than a cruel april fools joke 
According to all of this, chances for a reunion of Factor 5 seem slim, I'm sorry to report.
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