Factor 5 accused of fraud in new lawsuit

by Alexander Sliwinski { Jun 17th 2009 at 11:15AM }

A new lawsuit by former employees of Factor 5 claims the company fraudulently shifted assets to avoid ponying up $900,000 in unpaid wages to employees and millions to creditors. The Marin Independent Journal reports the suit outright states that the company stopped paying workers on November 1, 2008 and let them go on December 19. That explains why there were rumors of the company shutting down six months before the official closure announcement was made in May.

As for the alleged fraud, the suit claims that Factor 5 moved assets (source code and other IP) into a company, now called White Harvest, to shield it from creditors. The plaintiffs claim that the company is being run by the same people, same lawyers, "with all the same management and ownership and control," and is performing the same work that Factor 5 was up to -- just with a new name and address. Expect to see more about this kerfuffle in the future.

[Via Gamasutra]

Tags: business, factor-5, factor-5-closes, fraud, lawsuit

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Reader Comments (Page 1 of 1)

PedoJokerBear (aka Deeznuts) @ Jun 17th 2009 11:19AM

factor 5 meet amendment 5

Cody @ Jun 17th 2009 11:21AM

http://www.youtube.com/watch?v=yxE_oQBwrdU

PedoJokerBear (aka Deeznuts) @ Jun 17th 2009 11:24AM

haha i was thinking of that same sketch

Dirty @ Jun 17th 2009 11:20AM

Pay no attention to the motion controlled dragon in the corner.

Cody @ Jun 17th 2009 11:20AM

Oh my.

Lustis @ Jun 17th 2009 11:21AM

That's what I was thinking. My dog just farted

Cody @ Jun 17th 2009 11:22AM

ROFL

God arent those the worst farts too??

Lustis @ Jun 17th 2009 11:52AM

There's no doubt about it! Haha

princeofshapeir @ Jun 17th 2009 2:05PM

It works 8 out of 10 times!

NintendoJunkie @ Jun 17th 2009 11:26AM

I know I'd be pissed to say the least...it's kinda ironic actually...I was supposed to get my last check from my old job that I was fired from but my direct deposit didn't go thru today.

The owner recently sold the company & were slack in regards to anyone coming into work late...say 10 mins...15 mins...etc. However my wife has misc. medical conditions & I was late a lot due to helping her out. I how I love corporate takeovers.

BananaBoat @ Jun 17th 2009 11:38AM

Judge Judy their asses

Storm Eagle @ Jun 17th 2009 11:25AM

Where is the photoshopped image of the the dragon taking off with a bunch of money?

redjack @ Jun 17th 2009 11:36AM

I second that demand

Jack_Jackington @ Jun 17th 2009 11:42AM

@ redjack

it was a question

redjack @ Jun 17th 2009 12:45PM

de·mand

1 b: an act of demanding or asking especially with authority b: something claimed as due

2 archaic : question

But ultimately it would be Storm's call if you want to try to fight over the semantics

Sly [PSN SniperChameleon] @ Jun 17th 2009 12:59PM

redjack just owned red x jack haha

Obie @ Jun 17th 2009 11:33AM

In the indelible words of Admiral Ackbar:

"IT"S A TRAP!"

dabogues @ Jun 17th 2009 11:37AM

I accuse Factor 5 of fraudulently billing "Lair" as a game, which implies fun.

Ignatius @ Jun 17th 2009 3:24PM

That's why their employees are unpaid. The crappy game they made bombed.

Gamer4Life @ Jun 17th 2009 11:39AM

God always punishes those who seek to bring down gaming and factor 5 got what was coming to them.

BananaBoat @ Jun 17th 2009 11:43AM

Play them out, keyboard cat

LordToastington @ Jun 17th 2009 11:46AM

Duh Da Dah Da Du Da DAA Da

Orion @ Jun 17th 2009 11:46AM

Worst avatar photoshop job, ever.

NintendoJunkie @ Jun 17th 2009 11:49AM

LOL

Sly [PSN SniperChameleon] @ Jun 17th 2009 1:00PM

bananaboat had a better one...

BananaBoat @ Jun 18th 2009 12:26AM

Photoshop? Pffft. I made this baby in MS Paint.

fadeoutagain2784 @ Jun 17th 2009 11:48AM

Wow Factor 5... Lair was bad enough... did you really have to go out so disgracefully?

Gamer4Life @ Jun 17th 2009 11:50AM

God always punishes those who seek to bring down gaming and factor 5 got what was coming to them.

Gamer4Life @ Jun 17th 2009 11:51AM

Damn joystiq's comment system >:(

zochmenos @ Jun 17th 2009 11:51AM

"Why doesn't Nintendo show anything about that Kid Icarus game Factor 5 was working on?"

Thanks

Rob @ Jun 17th 2009 12:43PM

Well, I guess this explains where that went.

TX2 @ Jun 17th 2009 11:56AM

This is Interplay all over again...

Adv2k1 @ Jun 17th 2009 12:37PM

I thought it was IGN doing a lawsuit over kid icarus

Smoke_me_a_Kipper @ Jun 17th 2009 2:24PM

Warp factor 5 - straight to prison

eromonhtiaf @ Jun 17th 2009 4:23PM

How has no one noticed that the other company is called "White Harvest" and Factor 5 worked on some Star Wars games with the Return of the Jedi being filmed under the code name "Blue Harvest: Fear Beond Imagine".

The plot thickens.