Unknown Worlds has filed a lawsuit against its former leadership team, alleging breaches of employment agreements and "fiduciary duty of care"

The game developer Unknown Worlds has initiated a lawsuit against its former executives, Charlie Cleveland, Adam McGuire, and Ted Gill. The accusations involve multiple breaches, including those of equity purchase agreement and employment contracts, as well as a duty of care violation in their roles as directors.

Krafton, the parent organization, provided GamesIndustry.biz with a redacted version of the lawsuit filing. It alleges the former leaders of Unknown Worlds threatened legal action against Krafton, emphasizing an early release date for Subnautica 2 for personal gain, rather than focusing on early access to engage the gaming community.

Last month, details emerged about a legal dispute initiated by the former leadership against Krafton, Inc. This dispute involves a $250 million bonus linked to 2025 revenue targets for Subnautica 2's Early Access release. Fortis Advisors LLC, representing former shareholders of Unknown Worlds Entertainment, claims Krafton used tactics to delay the release and thus avoid the bonus payment. Krafton maintained the delay was requested to ensure the sequel met quality standards and retained player trust.

The current lawsuit further alleges that the former leaders considered self-publishing Subnautica 2, potentially releasing it without the support of Krafton for marketing and distribution. According to Krafton, this threat led to the termination of their employment.

Additionally, Krafton contends that Cleveland, McGuire, and Gill downloaded extensive company files and emails before their employment ended. These actions, they noted, were unprecedented in volume and involved confidential information that the former leaders allegedly refused to return or confirm possession of.

Krafton claims that when asked, the trio threatened to delete the files and denied access to devices containing confidential company information for checks.

The comprehensive 74-page complaint reiterates Krafton's standpoint that Cleveland and McGuire were disengaged from the development of Subnautica 2, leaving Gill unable to manage the creative and technical leadership challenges.

For a detailed chronology of the dispute, visit this page.