According to reports on GameSpot and Next-Gen, development on the game has been 'transitioned' to another studio (which we presume is fancy speak for 'change hands', a rare but not unheard of occurance on games based on licences).
The source speaking to GameSpot said this meant 30 staff at The Collective were now without a project to work on - although that doesn't necessarily mean they are without jobs entirely.
In an official statement, parent company Foundation 9 said: "Due to the nature of our ever-changing business, Foundation 9 Entertainment is always trying to optimize our studio organization, performance and production processes in order to better serve our publishing partners, shareholders and employees.
“When this optimization leads to job loss at one studio, we make every effort to find a place for displaced employees at another of our studios. Foundation 9 is currently hiring for 40 positions in our studios across North America, and is still in a state of growth with more than 30 projects in development."