Game developer Factor 5 in San Rafael, California has now been officially shut down according to a statement released on the developer's website. It would however seem that the German part of Factor 5 is still alive.
The last game to come out of Factor 5 was the disappointing PS3 exclusive Lair, but the developer was working on a couple of projects for Brash Entertainment. However when the publisher went bankrupt the fallout meant that Factor 5 also went down.