Several former employees at Blue Omega, developers behind the recent Damnation, have confirmed with Kotaku today that the entire dev team has been laid off following "issues" with Codemasters, Damnation's publishers.

They allege that there were a raft of lawsuits behind the sackings, which stem from Blue Omega being "taken off" their own game by Codemasters, as well as a dipsute between Blue Omega and two subcontracting studios, one of which stands accused of having continued work on Blue Omega's title even after Blue Omega had been stood down, and the other of having performed shoddy work.

In addition to those messy behind-the-scenes affairs, the former employees also stated that poor sales of Damnation were a contributing factor.