The troubled development saga of Ashes of Creation has taken the first of many legal turns. In early February 2026, three former employees of Intrepid Studios, Zakary Strange (technical director), Noah Ortega (VFX artist), and Jacob Burdecki (gameplay engineer) all filed separate class-action lawsuits in the U.S. District Court for the Southern District of California, alleging violations of labor laws during the studio's abrupt shutdown.
The complaints, filed on February 4th and 5th, 2026 (case numbers 3:26-cv-00708 and 3:26-cv-00728), center on the Worker Adjustment and Retraining Notification (WARN) Act and its California equivalent (CAL-WARN). The WARN Act requires employers with 100+ employees to provide 60 days' advance written notice before a mass layoff or plant closing affecting 50+ workers or 33%+ of the workforce. The suits claim Intrepid ordered mass terminations on or about February 2, 2026, without notice, impacting an estimated 200 employees (including remote workers reporting to the San Diego headquarters at 3721 Valley Centre Drive).
Key allegations include:
- Failure to Provide 60-Day Notice: No advance warning was given for the layoffs/plant closing, with no exceptions (e.g., physical calamity or act of war) applying.
- Unpaid Final Wages and PTO: Employees were not paid for their last weeks of work, accrued paid time off (vacation), or other owed benefits; final paystubs were not issued.
- State-Specific Claims: Violations of California Labor Code § 1400 et seq. (CAL-WARN) and Ohio Revised Code § 4113.15 (for Burdecki, an Ohio resident), plus waiting time penalties for willful non-payment (up to 30 days' wages).
- Class Action Status: The plaintiffs seek certification as representatives for all similarly situated former employees terminated on or around February 2, 2026, or within 30 days thereafter.
Relief sought includes back pay for 60 days of wages/benefits, waiting time penalties, interest, attorneys' fees, costs, and other equitable remedies.
The lawsuits follow Intrepid's chaotic collapse. In late January 2026, founder/creative director Steven Sharif and much of senior leadership resigned "in protest" over board decisions they could not ethically support. (A board that was not made known to the public.) The board then issued WARN notices and proceeded with mass layoffs, reportedly due to inability to meet payroll. Social media and LinkedIn posts from affected staff confirmed the terminations, with many reporting no final paychecks, PTO payouts, or severance. Former communications director Margaret Krohn organized a virtual job fair for displaced workers.
Ashes of Creation launched in Steam Early Access in December 2025 after raising $3.2 million on Kickstarter in 2017. Mixed reviews and performance issues plagued the launch, with Steam quietly delisting sales and issuing refunds to some buyers amid the turmoil. The MMORPG's future remains unclear with most if not all of the ~210-person team gone and no official statement from Intrepid.
The suits highlight broader industry concerns over sudden studio closures, unpaid wages, and WARN compliance. No bankruptcy filing has been reported, raising questions about liability. Intrepid has not publicly responded to the lawsuits.
This likely marks the start of further legal action. Whether Kickstarter backers are entitled to refunds, if the game servers stay online, or if development resumes remains unknown. The lawsuits underscore the human cost of sudden studio shutdowns in gaming. Stay tuned for court developments and any official response from Intrepid. There will be more news and drama regarding Intrepid and Ashes Of Creation for sure.