It's not uncommon, and it always sucks to hear but sometimes employees at game studios get treated really badly. It seems this is probably happening yet again as an anonymous post has been published over on Gamasutra. This time the company allegedly at fault is recently closed 38 Studios, creators of Kingdoms of Amalur. The post details how staffers were treated poorly, given broken promises, overly long hours, and poor information flow.
I always hate hearing about these types of situations, I'm sure the families affected will bounce back but that doesn't make the situation any less crappy. My heart goes out to the families, hopefully this hard time in their lives will pass swiftly.