Unknown Worlds has filed a lawsuit against its former leadership team, alleging violations of employment agreements and a breach of "fiduciary duty of care"
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Unknown Worlds has initiated legal proceedings against its former executives Charlie Cleveland, Adam McGuire, and Ted Gill. The lawsuit alleges violations including breach of equity purchase agreement, breach of implied good faith and fair dealing, breach of employment contract, and failure to uphold fiduciary responsibilities as directors.
Krafton, the parent company, provided GamesIndustry.biz a link to the redacted lawsuit documents. The trio is accused of threatening litigation and prioritizing personal financial objectives over the scheduling of Subnautica 2, specifically insisting on payments over releasing an early access version designed to attract gamers to the title. The company asserts that former leaders prioritized personal goals over corporate interests.
A recent public disclosure of a legal dispute involving Krafton, Inc. and former executives of Unknown Worlds, the developers of Subnautica 2, sheds light on issues surrounding a $250 million bonus linked with revenue goals for the game's 2025 Early Access launch. Represented by Fortis Advisors LLC, former shareholders claim Krafton, Inc. attempted to avoid this payout by allegedly using tactics to delay the game's release. However, Krafton justified a requested postponement to ensure the sequel's quality and maintain player confidence.
The lawsuit further accuses Cleveland, McGuire, and Gill of threatening to release Subnautica 2 independently, without Krafton's support or promotional resources. This situation reportedly forced Krafton to sever their professional relationship.
Additionally, Krafton charges the former leaders with downloading a substantial volume of company files and emails before their departures, describing the scale as unmatched since 2022. Krafton claims these individuals did not return or clarify control over devices containing sensitive information.
Krafton states that when pressured for access, the executives threatened data deletion and again denied inspection of their devices holding confidential data.
The 74-page legal document also describes Cleveland and McGuire as having disengaged from the Subnautica 2 project, leaving Gill unable to manage the resulting leadership void.
For a detailed account of the ongoing legal disputes between Krafton and the former Subnautica 2 development leads, refer to our timeline here.