The company dismissed rumors that more as many as three dozen members of Tecmo-owned studio Team Ninja left in the wake of departing chief Tomonobu Itagaki, who announced his resignation earlier this month. The former studio lead also filed suit against Tecmo, claiming over $1.4M in unpaid bonuses.

Tecmo noted that the lawsuit filed by two of its employees alleging gross labor violations only directly involves those two specific employees, though it did not address allegations that the legal action represents all the of its 300 workers.

"Although a lawsuit was filed by the two employees, on April 1, 2008, Tecmo, LTD. did notify all affected employees that they would be appropriately compensated and is currently in the process of resolving the matter," a company spokesperson stated.

Previous reports had also suggested that Tecmo may have violated Japanese law by withholding information about Itagaki's suit, filed on May 14, from its shareholders. The company refuted those reports, saying that it has "observed the provisions defined by the Exchange and has released information accordingly and in a timely manner."

Many of the reports about the ongoing legal struggle between Tecmo and its employees have cited sources inside Team Ninja and Tecmo, as well as Itagaki's previously mentioned public statement. Tecmo has since filed a gag order against the former studio chief to restrict him from speaking further on the pending lawsuits.

Tecmo added that the "false and inaccurate reporting" has spurred an uneasy anxiety among its development staff in the closing comments of its statement, which we offer reproduced in its entirety.