It was a less-than-happy holiday season for the folks over at Planet Moon Studios, it seems -- multiple sources are reporting that the studio responsible for games such as Giants: Citizen Kabuto and Armed & Dangerous ran out of funding last December, due to the loss of a "substantial amount" of money allegedly owed by investors. CEO Aaron Loeb says his company will file suit against its debtors.

Fortunately, MMO developer Bigpoint has picked up 37 staff members from Planet Moon, swelling the ranks of its San Francisco studio to more than 100 people. Bigpoint's CEO, Heko Hubertz, says the refugee staffers will be put to work using their cross-platform experience on Bigpoint's titles, which it just recently claimed have an audience of over 150 million users.

Joystiq has reached out to Loeb for a comment on the pending legal action, and to learn what happened to any titles the company currently has (or had) in development. We'll let you know when we hear back.

This article was originally published on Joystiq.