Ask the Chatbot Games & Quizzes History & Society Science & Tech Biographies Animals & Nature Geography & Travel Arts & Culture ProCon Money Videos
verifiedCite
While every effort has been made to follow citation style rules, there may be some discrepancies. Please refer to the appropriate style manual or other sources if you have any questions.
Select Citation Style

What was the Krafton lawsuit over Subnautica 2?

Written and fact-checked by
The Editors of Encyclopaedia Britannica
Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree....
The Editors of Encyclopaedia Britannica

In 2021 Krafton acquired Unknown Worlds Entertainment with an agreement that cofounders Charlie Cleveland and Max McGuire and chief executive Ted Gill would continue leading the studio. They would receive a substantial bonus if Subnautica 2 met certain commercial targets by 2025. In 2025 the arrangement broke down: The executives were dismissed, and the studio lost access to the tools needed to publish the game. The founders filed suit in Delaware, alleging wrongful termination and interference with the game’s development. In March 2026 the Delaware Court of Chancery ruled in their favor, finding the dismissals unjustified. Gill was reinstated as studio head, but Cleveland and McGuire were not reinstated to their jobs, and the earnout deadline was extended.