Subnautica 2 Lawsuit, The $250M Corporate Case You Can’t Join (Here’s the Truth)
Let’s cut through the confusion: There is NO consumer lawsuit for Subnautica 2 players. No class action. No settlement claims you can file. This is a bitter corporate divorce between Korean publisher Krafton and the three founders of Unknown Worlds—Charlie Cleveland, Max McGuire, and Ted Gill—fighting over a $250 million performance bonus. If you’re a gamer looking for compensation, you’re in the wrong place.
What Is This Lawsuit Actually About?
Krafton bought Unknown Worlds for $750 million in 2021: $500 million upfront, plus a potential $250 million “earnout” tied to hitting performance goals through 2025. That bonus was supposed to reward the founders and employees if Subnautica 2 succeeded.
Then everything exploded in July 2025.
The founders’ version: Krafton sabotaged Subnautica 2’s development for months to delay its 2025 early access launch and dodge the $250 million payout. They claim Krafton CEO Changhan Kim said releasing the game in 2025 “would have been disastrous” for the company because it would trigger the massive bonus.
Krafton’s version: The founders abandoned their jobs, stopped working on Subnautica 2, and got fired for cause. Krafton says it discovered in May that Cleveland and McGuire were no longer participating in development.
The Drama Gets Messy
This isn’t your typical corporate dispute. It got nuclear fast.
The ChatGPT bombshell: Court filings allege Krafton CEO Kim Chang-han asked ChatGPT how to avoid paying the $250 million earnout. The AI reportedly advised it would be “difficult to cancel the earn-out.” Krafton disputes this characterization.
Internal codename “Project X”: The founders allege Krafton’s plan to avoid the earnout was codenamed “Project X” internally.
170,000 stolen files? Krafton claims the founders took over 170,000 confidential files when they left, including what amounts to “a blueprint for Subnautica.”
What the Trial Revealed (November 2025)
A three-day trial in Delaware Chancery Court exposed embarrassing details from both sides.
Cleveland’s admission: When asked why he didn’t tell Krafton CEO he’d checked out of work, Cleveland testified: “That’s not a great reason, I admit.” Cleveland wrote in a private message on January 8, 2024: “I stopped working four months ago and have entered semi-retirement.”
The earnout negotiation: On June 10, 2025, Ted Gill told Krafton: “If you want to delay the game, just pay it. Just pay the earnout…agree to pay it now, we can sign something tomorrow.”
Kim’s testimony: Krafton CEO said the company would never have paid $500 million upfront in 2021 if it knew the founders would stop making games.
The Verdict Status (As of December 2025)
No decision yet. The trial ended November 19, 2025. Post-trial arguments are scheduled for January 9, 2026, with the court’s decision to follow.
Why This Matters to Gamers (Even Though You Can’t Join)
Subnautica 2’s fate hangs in the balance. The game was delayed from 2025 to 2026. It had nearly 2.5 million wishlists on Steam, making it one of the most anticipated PC titles.
The studio is in chaos. Krafton’s own internal report showed employees cited “a significant lack of trust in Krafton” and fear that anyone who pushed back could be fired.
This isn’t about you getting money. Krafton clarified that 90% of the $250 million bonus would go directly to the three co-founders, with the rest split among employees.
What Laws Apply Here?
This is a breach of contract case under Delaware corporate law, where most major companies incorporate. The key legal document is the 2021 Equity Purchase Agreement.
The founders claim Krafton violated:
- Promises to leave operational control with the founders
- Requirements to consult before taking actions that harm the earnout
- Prohibitions on terminating founders without cause
- Restrictions on actions designed primarily to frustrate the earnout
Krafton claims:
- The founders were terminated “for cause” due to abandonment
- Theft of confidential information justifies the termination
- The delay was about game quality, not avoiding payment
Similar Corporate Gaming Lawsuits
Bungie vs. Activision (2019): Bungie fought to reclaim Destiny IP rights and eventually secured independence. That dispute also involved profit-sharing and creative control.
Epic vs. Silicon Knights (2012): Epic sued over stolen Unreal Engine code, ultimately bankrupting Silicon Knights.
West/Zampella vs. Activision (2010): Call of Duty creators sued Activision for $1 billion over unpaid royalties and wrongful termination—they eventually settled and founded Respawn Entertainment.
The Bottom Line: What Legal Experts Say
Corporate acquisition lawyers note this case highlights the risks of “earnout” structures in studio acquisitions. These performance-based bonuses create inherent conflicts: publishers want to minimize payouts while founders want to maximize them.
The key legal questions:
- Did the founders actually abandon their posts or did Krafton create a pretext to terminate them?
- Did Krafton breach its contractual duty not to interfere with the earnout?
- Does the alleged file theft justify termination “for cause”?
FAQ: Subnautica 2 Lawsuit
Q: Can I join this lawsuit or claim compensation?
No. This is not a class action or consumer lawsuit. It’s a private contract dispute between Krafton and the founders.
Q: Will Subnautica 2 still be released?
Yes. The game is currently scheduled for 2026 under new leadership at Unknown Worlds.
Q: Who gets the $250 million if the founders win?
The three founders would receive 90% (roughly $225 million), with the remaining 10% distributed to Unknown Worlds employees who were there during the earnout period.
Q: Can players get refunds for Subnautica 2?
The game hasn’t launched yet, so there’s nothing to refund. This lawsuit doesn’t affect existing Subnautica games.
Q: When will the court decide?
Post-trial arguments are January 9, 2026. The actual ruling could come weeks or months after that.
Q: Did Krafton really use ChatGPT to avoid paying?
Court filings allege this, and Krafton initially denied it. Later, Krafton’s CEO admitted consulting ChatGPT but disputes the characterization that he was trying to illegally avoid payment.
Q: What happens to Unknown Worlds now?
Krafton has full operational control. The founders were terminated and replaced with new leadership.
Q: Are there any other bonus payments?
Roughly 40 Unknown Worlds employees will be eligible to share a $25 million bonus if revenue goals are met, with the schedule reportedly extended by a year.
What Happens Next?
January 9, 2026: Post-trial arguments before the Delaware Chancery Court.
Early 2026: Court decision expected, though the exact timing is unclear.
Possible outcomes:
- Founders win reinstatement and full $250 million earnout
- Krafton wins, founders get nothing, terminations upheld
- Settlement reached (both sides split the difference)
- Partial victory (founders get some money but not their jobs back)
The Takeaway
This isn’t a lawsuit you can benefit from. It’s a cautionary tale about what happens when massive money, bruised egos, and corporate control collide.
For gamers: Watch Subnautica 2’s development closely. A studio in legal turmoil rarely produces great games.
For the industry: Earnout deals in gaming acquisitions are getting messier. Expect more of these fights as consolidation continues.
For legal nerds: This case will likely set precedents for earnout disputes in the gaming industry, especially around what constitutes “abandonment” versus legitimate disengagement from day-to-day work.
The truth? No matter who wins in court, Subnautica 2’s troubled development means fans have already lost. The game that should have launched in 2025 is delayed, the original creators are gone, and trust between studio and publisher is shattered.
That’s the real story behind the “Subnautica 2 lawsuit”—and it has nothing to do with you getting a payout.
Last Updated: December 29, 2025
Court: Delaware Court of Chancery
Case Status: Awaiting post-trial decision (January 2026)
Consumer Impact: None—this is a corporate contract dispute
Disclaimer: This article is for informational purposes only and does not constitute legal advice. All information is based on publicly available court documents and news reports as of December 2025.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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