It’s been seven years since Scary Stories to Tell in the Dark first hit theaters—and despite strong box office success, a sequel is still nowhere in sight.

The 2019 adaptation of Alvin Schwartz’s iconic horror book series proved to be a solid hit for Lionsgate, pulling in over $104 million worldwide and introducing a new generation to Stephen Gammell’s nightmarish illustrations brought to life on screen. But for fans hoping this would be the start of a franchise, the follow-up has remained stuck in development limbo ever since.

Speaking with Slash Film, director André Øvredal (Passenger) offered a candid update on where Scary Stories to Tell in the Dark 2 currently stands—and why it still hasn’t moved forward.

“What I can say is that it’s been stuck in a bit of a copyright ownership hell with two studios that don’t exist anymore, CBS Films and eOne, and they don’t really exist anymore,” Øvredal explained.

He went on to note that the rights have since been split across other companies, creating a complicated legal situation that has stalled progress. “They have to agree to figure it out between them, and that has taken some time,” he said. “We do have conversations about it once every couple of months, and there is currently some movement, I’m gathering.”

According to Øvredal, the frustrating part is that the creative side is ready to go. “It becomes about legal departments and not about creatives, because we have a story that I love that is just ready to go whenever somebody decides, ‘I own the movie, let’s go make it.’”

Last reported, Øvredal is still attached to return as director, with writers Dan and Kevin Hageman also expected back to pen the sequel.

The original film drew from Alvin Schwartz’s legendary trilogy of Scary Stories to Tell in the Dark books, weaving together multiple short horror tales and bringing Gammell’s disturbing artwork to life. A sequel would likely continue mining the remaining stories—though whether it follows the first film’s wraparound narrative or takes a new direction entirely remains unknown.

The first film ended with Stella Nicholls (Zoe Colletti) setting out to rescue her missing friends after the horrors unleashed from the book refuse to stay contained.

For now, Scary Stories to Tell in the Dark 2 remains trapped in legal limbo—but Øvredal’s comments suggest it hasn’t been fully buried just yet.