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Starbreeze raided by authorities, one person arrested

Swedish Economic Crime Authority have seized computers and documents from troubled publisher this morning

Swedish authorities have mounted a surprise raid on Starbreeze's headquarters, leading to at least one arrest.

Multiple local news outlets, including Expressen, report that the nation's Economic Crime Authority (ECO or EBM) have raided the games firm's head office in Stockholm this morning.

Chief prosecutor Thomas Langrot confirmed to Expressen that "a person has been arrested" while Dagens Industri claims the incident its related to "gross insider crimes", which suggests insider trading.

Authorities are also said to have seized computers and documents from the premises. But despite the publisher's well-publicised financial troubles, the incident appears to be centred around the arrested individual.

According to Expressen, Ann Charlotte Svensson -- the publisher's investor relations chief -- has said in a statement: "The company as such is not the subject of any suspicion. The company cooperates with the ECO. The event does not affect the company of the ongoing business reconstruction."

GamesIndustry.biz has contacted both Starbreeze and ECO for further clarification and comment.

Earlier this week, it was reported Starbreeze faces insolvency and that its CEO is stepping down following the poor commercial performance of Overkill's The Walking Dead.

It has regularly been posting pre-tax losses -- most recently at $11.3m for the latest quarter -- and had begun steps to cut development costs in order to salvage the business.

UPDATE: ECO press officer Niklas Ahlgren has issued a statement to GamesIndustry.biz, confirming the following:

"This morning officals from the Swedish Economic Crime Authority raided the offices of Starbreeze in Stockholm. One person was arrested and items were seized. The raid is part of an ongoing investigation involving suspected insider trading."

GamesIndustry.biz has also received the full statement from Starbreeze via Svensson, which reads:

"On Wednesday Swedish Economic Crime Authority has conducted a search query at Starbreeze AB. The company has been informed that this has occurred due to suspicions of insider charges. The company as such is not subject to any suspicion. The company cooperates full with the Swedish Economic Crime Authority. The event does not affect the company or the ongoing business reconstruction.

"Starbreeze has no further information on the matter."

More as it happens.

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