Court Orders Krafton to Reinstate CEO and Restore Authority Over Subnautica 2
A recent ruling from the Delaware Chancery Court has directed Krafton to reinstate Ted Gill as CEO of Unknown Worlds and to restore his authority over the early access launch of Subnautica 2. This comes amid a legal dispute surrounding a significant $250 million bonus tied to revenue targets for the game.
Court Ruling Details
The court’s decision, made by Vice Chancellor Will, criticized Krafton for terminating Gill and other key executives without valid cause. The ruling stated that Krafton improperly seized operational control of Unknown Worlds, which violated the Employment Partnership Agreement (EPA) with the company.
- Ted Gill reinstated as CEO of Unknown Worlds
- Krafton must restore Gill’s operational control
- Krafton is required to give Gill access to his Steam platform
- Deadline for $250 million bonus extended to September 15, 2026
Background of the Dispute
The legal complaint was made public in July 2022, involving the former leadership of Unknown Worlds, represented by Fortis Advisors LLC. They accused Krafton of attempting to evade the $250 million bonus by delaying the game’s release through unethical tactics.
In defense, Krafton alleged that the previous executives threatened to self-publish the game. According to Krafton, this forced their hand in terminating the employment of Gill and his team. However, the founders deny these accusations, asserting that Krafton changed its justification for firing them during the litigation.
Implications of the Court Decision
The court ruled that Krafton’s actions were inappropriate and warned them to respect Gill’s rights regarding the launch of Subnautica 2. The ruling allows Gill’s team more time to meet the contractual obligations necessary for the bonus payout.
The judge expressed skepticism over Krafton’s claims concerning alleged unauthorized data downloads by the founders. Krafton could not establish that these downloads justified the terminations of Gill and his team.
Krafton’s Response
In a public statement, Krafton reaffirmed its commitment to prioritize players and stated its intention to strengthen and prepare Subnautica 2 for the Early Access release. They noted their disagreement with the ruling and indicated that they are assessing their legal options moving forward.
Krafton emphasized that it remains focused on delivering an exceptional gaming experience for Subnautica’s fans while further litigation is expected concerning the executives’ claims for damages and bonuses.
