You might recall the demise of Hellgate developer Flagship Studios from last month, and the subsequent shutdown of Mythos and IP fight over Hellgate. Now Flagship’s former Seattle team has reconstituted itself as Runic Games, continuing its focus on action-MMORPG games.

Travis Baldree, formerly of Flagship Seattle, emailed us Sunday with the news release. He was the project director for Mythos and is now the president of the new venture. Baldree is joined on the management team by Max Schaefer, formerly executive producer for Mythos. Baldree said all 14 on the Seattle team are aboard — “basically the whole Mythos team”.

The studio has a Web site, and the full news release is on the jump.