Subnautica 2's former leadership team has filed a lawsuit against Krafton. The news comes as the South Korean publisher of Subnautica 2 recently issued a statement against the plaintiffs, accusing game director Charlie Cleveland and fellow Unknown Worlds co-founder Max McGuire of nonfeasance.
Krafton's latest statement also addressed the allegations of bad-faith termination. Previously, Krafton was accused of firing the leadership team to avoid a $250 million bonus payment. Now, the company claims it allocated 90% of the earnout in question to the former executives. In other words, Krafton says Charlie Cleveland, Max McGuire, and Ted Gill planned to keep almost the entire earnout for themselves, without sharing it with the development team—a new allegation in itself.
Related Subnautica 2 Studio Co-Founder Makes Statement After Being Removed
Charlie Cleveland, the former CEO of Unknown Worlds, speaks out after he and the other members of the Subnautica 2 leadership team were replaced.
PostsIn response to Krafton's allegations, Charlie Cleveland, Subnautica 2's former game director, announced a lawsuit. Although the details have not been disclosed, it appears the former executives are preparing to take Krafton to court with a defamation case. Cleveland's statement also addresses the allegations of plans to hold onto the $250 million earnout. He wrote, "The idea that Max, Ted, and I wanted to keep [the earnout] all for ourselves is totally untrue." To support this, he explained that the trio had always shared their profits with the team, including when they sold the studio to Krafton.
There Is a Growing Backlash Against Krafton
A Reddit post urging fans not to buy Subnautica 2 now has over 50,000 upvotes. Similar posts even encourage others to remove the title from their Steam wishlists so it no longer appears among the most anticipated games. Cleveland's lawsuit announcement is also receiving massive support, with fans rooting for the former executives to "take down" Krafton in court.
CloseSome parts of the lawsuit against Krafton are expected to become public soon. Cleveland, who has been the voice of the fired executives, has assured fans he will keep them informed. In the coming days, it will be interesting to see how the events unfold and, more importantly, how the recent Subnautica 2 controversies will affect the game's launch in 2026.
Krafton has been involved in several lawsuits in the past, including a controversial case in India, where an individual sued the company for allegedly selling user data through the messenger app Telegram. Although Krafton has denied the allegations, that lawsuit appears to be ongoing. Now, the South Korean company will need to lawyer up again, as a new lawsuit, this time from its former executives, is right around the corner.
