From Diablo Wiki
Based in Seattle WA, Runic Games was founded in August 2008 by Travis Baldree, Max Schaefer, Erich Schaefer and Peter Hu. On October 27th 2009, Runic released their single-player Action RPG, Torchlight.
After Flagship Studios disbanded, the members who were working on Mythos all signed for Runic Games and went on to work with Torchlight. Torchlight 2 is planned and will be followed by a "action-MMORPG" set in the world of Torchlight.