I don’t think anyone was expecting this. But in the Subnautica 2 lawsuit, a judge ordered Krafton to restore the fired Unknown Worlds CEO and give him a chance to earn a $250 million bonus.
It’s a huge setback for Krafton, which fired the CEO/founders of Unknown Worlds for allegedly breaching their promise to work on Subnautica 2. The founders claimed they were fired because Krafton didn’t want to pay a $250 million earnout, with until September 15, 2026, to earn it. And now the judge in the case has sided with the founders.
The action happens nine months after Krafton fired the leaders of the studio, including former CEO Ted Gill. Now the judge ordered Gill be reinstrated and control of the game’s early release schedule be returned to Gill.
“Krafton breached the EPA [Equity Purchase Agreement] by terminating the key employees without valid cause and by improperly seizing operational control of Unknown Worlds,” the judge ordered.
“Edward Gill is hereby reinstated as CEO of Unknown Worlds, and his period of operational control under Section 2.7(f) of the EPA will be extended by the time that elapsed between his wrongful termination and his restoration. The July 1, 2025 Board resolution is declared ineffective to the extent it infringes on Gill’s operation control right.
The judge cited a “material breach of contract” by Krafton as the reason for the decision.
The judge also ruled for Krafton to reinstate studio co-founder Max McGuire and Subnautica designer and director Charlie Cleveland.
“While we respectfully disagree with today’s ruling, we are evaluating our options as we determine our path forward,” Krafton said in a statement provided to PC Gamer. “Today’s ruling does not resolve the former executives’ claim for damages or an earnout related to Subnautica 2, with further litigation still pending. In the meantime, Krafton’s immediate focus remains unchanged: delivering the best possible game to Subnautica’s fans.”
In a statement to GamesBeat, Krafton said:
“Krafton puts players at the heart of every decision, and that will never change. Over the past several months, Krafton and the Unknown Worlds team have worked tirelessly to strengthen the game and prepare it for an Early Access release, with a continued focus on delivering the best possible experience for the Subnautica community. We look forward to pushing out the newly updated version as soon as possible for players.
While we respectfully disagree with today’s ruling, we are evaluating our options as we determine our path forward. Today’s ruling does not resolve the former executives’ claim for damages or an earnout related to Subnautica 2, with further litigation still pending. In the meantime, Krafton’s immediate focus remains unchanged: delivering the best possible game to Subnautica’s fans.”