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iam8bit Sues Skybound for $4M Fraud Allegations

12/5/2025

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Story summary
  • Indie game company iam8bit filed a lawsuit against Skybound Game Studios, alleging fraud and breach of contract, seeking monetary and punitive damages and attorneys’ fees.
  • The suit alleges Skybound stole original designs and caused over $4 million in damages.
  • It accuses Skybound of padding expenses with fake line items and providing inaccurate reports.
  • The filing alleges exclusion from a Stray deal and use of trade secrets for its Nintendo launch.