Subnautica 2 Studio Founders Lawsuit Details Against Krafton Surfaces Online
The full lawsuit filed by the former Unknown Worlds leadership against Krafton regarding the mishandling of Subnautica 2’s early access launch and development has surfaced, revealing the exact nature of the claims being made. Krafton acquired Unknown Worlds for a sum of $500 million in 2021, with a promise of an additional $250 million bonus earn-out if certain revenue targets were hit by 2025. However, on the eve of the release of Subnautica 2, the South Korean publisher announced Steve Papoutsis will be replacing Charlie Cleveland, Ted Gill, and Max McGuire at Unknown Worlds effective immediately.
Krafton claimed that the decision to fire these executives and delay Subnautica 2 to 2026 was not “influenced by any contractual or financial considerations,” but rather motivated by a lack of content in the early access version, a fact that was corroborated by a leaked document later confirmed to be genuine by the company. In response, Cleveland announced a lawsuit against Krafton, mentioning that the “details should eventually become (at least mostly) public.”
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PostsA partially redacted version of the lawsuit by Fortis Advisors, the representatives of the former Unknown Worlds leadership, against Krafton, Inc., filed in Delaware, was made public on July 16. The lawsuit alleges that Krafton deliberately and with malicious intent sabotaged the development process of Subnautica 2 in order to avoid having to pay out the agreed-upon financial incentive. The South Korean publisher is accused of a “months-long campaign to delay Subnautica 2’s release,” for the express purpose of reneging on its deal.
Subnautica 2 Studio Founders vs Krafton Court Case Filing
CloseIn recompense, founders Charlie Cleveland, Ted Gill, and Max McGuire have two main demands: a court order forcing Krafton to pay the full $250 million earn-out, and a return of complete creative and operational control of the game. Crucially, the lawsuit argues the bonus payout should no longer hinge on Unknown Worlds meeting the revenue target, as Krafton itself is responsible for undermining Subnautica 2’s early access launch.
In addition to the claims being leveled against Krafton, the lawsuit also details a full timeline of events leading up to the Subnautica 2 controversy. The factual background section attempts to give full context to the current state of affairs. It includes how the 2021 acquisition played out, the $250 million deal, and the alleged obstructionist tactics used to delay Subnautica 2. In the lawsuit, the former Unknown Worlds leadership has brought forth three counts against the defendant.
Count 1: Breach of Contract - Damages Count 2: Breach of Contract - Specific Performance Count 3: In the alternative, Breach of Covenant of Good Faith and Fair DealingGeneral community sentiment has mostly been in favor of the fired Subnautica founders, though support cannot be considered unanimous. A critical point that prevents a lot of people from wholeheartedly believing Cleveland’s version of events is the leaked document showing the current state of Subnautica 2, which supports Krafton’s claims that the game isn’t ready for launch. Critically, the former executives have not yet come out and outright denied the authenticity of the leak, leading some to believe there is a nugget of truth in it.
