With the closure of Lionhead Studios fresh on our minds (as well as the disappearance of another five studios), it's sad to hear that the studio had not been prepared for the closure prior to the announcement.
It appears as though the developers working on Fable Legends were unaware that their development days were over prior to Microsoft's announcement, if a roundup from WCCF is anything to go by.
@BuldozerX More or less, yeah
— David Eckelberry (@eckelberry) March 8, 2016
Since the announcement has been made, there has been a not-so-subtle digging around the entire event. This digging has turned up a forum post from Fable Legends' Community Manager who was talking about the development of the game, as if the development was still ongoing.
According to reports and discussions held around the event, it has been said that the development team at Lionhead were being told of the studios closure "at the same time as that article went up on Xbox Wire." The article mentioned is the statement Microsoft released on the closure.
While there has been no clear statement saying "We at Lionhead Studios did not know we were about to be closed," these events suggest that this was the case.