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SoulBound Studios Letter in Chronicles of Elyria Lawsuit: 'Changing Direction Following a Business Reevaluation is Not Illegal.'

Letter from Xsolla lawyers too

Poorna Shankar Posted:
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The ongoing lawsuit regarding the sudden shut down of Chronicles of Elyria received some additional information today in the form of letters from the laywers of Soulbound Studios and Xsolla.

Yesterday, we reported on the fact that the lawyer representing the suit received two letters. Well, today over on the Discord channel, the letters were made available: one from Soulbound Studios, and one from Xsolla.

The SBS letter purports that the lawyers representing the suit did not explain how or why  the shut down announcement from SBS was a “clear misreprentation.” It continues, citing that businesses changing strategy is not a misrepresentation, and that the client has not provided any facts or evidence to legally support the claim,

“More importantly, however, other than theconclusory allegation, your client has provided no facts or evidence to legally support the claim. Thus, e.g., your client provides nothing to suggest that, at the time of the so-called “misrepresentation” Soulbound knew or should have known that therepresentation was false, as opposed to a reevaluation of the company’s position and a desire to continue operations. Again, changing direction following a business reevaluation is not illegal.”

The letter from Xsolla claims that they have no role in the development or distribution of games like Chronicles of Elyria, and that SBS is actually the party responsible for development. Therefore, Xsolla acted more like a third party between customers and SBS,

“Xsolla completed  sales  and  collected  payments  for  CoE  on  SBS’s behalf,  and  transferred  the  proceeds to SBS.  If SBS authorizes a return to Mr. Falls and provides Xsolla with the funds SBS obtained from Mr. Falls, Xsolla will refund Mr. Falls’ payment method.”

Feel free to read the letters in full if you’re interested.


Poorna Shankar

A highly opinionated avid PC gamer, Poorna blindly panics with his friends in various multiplayer games, much to the detriment of his team. Constantly questioning industry practices and a passion for technological progress drive his love for the video game industry. He pulls no punches and tells it like he sees it. He runs a podcast, Gaming The Industry, with fellow writer, Joseph Bradford, discussing industry practices and their effects on consumers.