Ex-Factor 5 Employees Suing Bankrupt Company
Studio was secretly working on an all new Rogue Squadron Game for Wii.

June 17, 2009 - Just months after the company filed for Chapter 7 bankruptcy and closed its doors, Factor 5, a San Rafael-based videogame studio, is now the subject of fraudulent activity.

A report by the Marin Independent Journal brings news that former employees of the studio have filed a lawsuit against the company and its founders for allegedly transferring assets to avoid paying it debtors during liquidation.

James Smith, a lawyer representing the employees, claims Factor 5 founders started a limited liability company called 'Blue Harvest' in which to transfer work completed on the Star Wars: Rogue Squadron game for the Nintendo Wii.

"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 Smith.

"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," Smith added.

When Factor 5 filed for bankruptcy on May 13th, there was $50,000 to $100,000 in assets and between $1 million to $10 million in debts. There were also 69 claims for unpaid wages totaling more than $900,000.

http://wii.ign.com/articles/995/995726p1.html

Really really wanted a new RS for the Wii. The first one on GC was one of my favourite games. Looks like a pipe dream now...

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