I've read the full article at Videogamer.com, and they go into a great deal of detail regarding attempts to elicit a comment from E.A and are vociferous in their denials of wrong doing. At the ripe old age of 49, I’ve witnessed the press get it wrong, assume, embellish and blatantly lie on many an occasion, but in this instance I would suggest that this is E.A throwing their weight about, basically bullying a smaller entity that has dared cast aspersions on the actions of E.A.
I think the truth will out, when in a few months time we will see a more formal announcement of the demise of the Dead Space franchise, but for the moment E.A. will want to maximise sales, and having it reported that a franchise has been cancelled as a direct consequence of the sales / profits generated by a game that has been out for a mere 3 weeks can only serve to harm those sales / profits. So E.A. will be looking to snuff out this story at the earliest opportunity, regardless of the veracity of the claims made.