The trials of the now-bankrupt developer Factor 5 have yet to end despite the studio being shuttered as of this past May 13th thanks largely to the closure of Brash Entertainment, publisher of their latest project.  Factor 5 would face multiple claims for an estimated $900,000 USD in unpaid wages from employees shortly after its own closure.  In addition to their unpaid November and December 2008 wages, the ex-employees claim they were laid off without the required notice.  Now the former Factor 5 faithful are taking the studio to court, and they've got yet another grievance to air.

The attorney representing the former employees alleges that the Factor 5 founders were involved in what is called fraudulent conveyance of intellectual property to the newly-founded studio Blue Harvest, now "White Harvest".  Their suit contends Factor 5's IP was transferred to White Harvest (which is in fact owned by the Factor 5 founders) prior to declaring bankruptcy and liquidating assets in a sneaky effort to skirt the repayment of debt and unpaid wages.

Factor 5 reportedly only had $50,000 to $100,000 in assets, while it faces up to $10 million USD in debt to creditors; around $4 million of that owed to LucasArts.  You may recall that Factor 5 previously collaborated with the big-name studio for the release of Star Wars Rogue Squadron II: Rogue Leader and Star Wars Rogue Squadron III: Rebel Strike on Nintendo's classic GameCube platform.  Factor 5 was also responsible for the PS3 shooter Lair, which would meet mixed reception.