According to a former dev on a banned forum, Taito USA hooked up with an American dev studio called "Teknocrest", and had them start making a few games for them.
Then Taito USA asked Teknocrest if they were capable of porting Lufia 1 from the SNES to Genesis, and Teknocrest knew they couldn't, so they bullshitted and said "Of course we can." So Taito USA asked them to drop everything and do that. Teknocrest farmed the port out to another studio (while lying to Taito USA about it being in-house), but that went nowhere, so it was sent back to Teknocrest. The Teknocrest dev messed around with it for a while, but unsurprisingly got nowhere. Then Teknocrest hired a "specialist" to take over, and they got nowhere with it.
Then Taito USA went bankrupt, because they had sunk millions into Teknocrest, and got a bit of non-playable SNES video to run on a Genesis. That's why Natsume published Lufia 2 in America after a significant delay, because Teknocrest killed Taito USA.
Yikes.