Court filing details new allegations against Krafton

Ousted Unknown Worlds co‑founders allege in a pre‑trial brief that Krafton CEO Changhan “CH” Kim created a secret task force called “Project X” to delay Subnautica 2 and avoid paying a forecasted $191 million earnout tied to an early‑access launch, citing Slack messages, internal milestones and even Kim’s use of ChatGPT as evidence that the delay and firings were engineered to neutralize the payout; Krafton denies the claims, saying the founders stopped working and the game needs more development and accusing them of data theft. The plaintiffs seek reinstatement and say Krafton’s explanations for termination are inconsistent; the case is set for trial Nov. 17, 2025 in Delaware Chancery Court. The dispute creates potential material liability, governance and operational risk for Krafton and could affect the timing and financial returns from Subnautica 2 as well as investor perception of management integrity.

Analysis

A pre-trial brief filed by Fortis Advisors on behalf of Unknown Worlds co-founders Charlie Cleveland, Max McGuire and Ted Gill alleges Krafton CEO Changhan “CH” Kim formed a secret task force called "Project X" to delay Subnautica 2 and avoid a May 2025 finance forecasted base-case earnout of $191 million; the filing cites Slack messages, an internal milestone review and even Kim's queries to ChatGPT as evidence. Krafton disputes the claims, saying the founders stopped working, the game requires more development and accusing them of stealing material described as a "blueprint" for Subnautica. The plaintiffs point to a May 27, 2025 internal milestone where Krafton’s creative director reportedly supported an August 2025 early access launch and assert discovery produced no Krafton employee who believed the game was unready; they seek reinstatement and the case is set for trial on November 17, 2025 in Delaware Chancery Court. The dispute creates tangible legal and governance risk that could result in material liability, delay expected Subnautica 2 revenue and impair investor perception of management integrity, a view echoed by the article’s moderately negative, uncertain sentiment and modest market-impact signal.

Key Decisions for Investors

• Monitor Krafton's public disclosures and any financial statements for recognition of a contingent liability or reserve tied to the forecast $191 million earnout and adjust valuation models if such charges or disclosures appear
• Defer initiating new long exposure tied to Subnautica 2 revenue until post-trial evidence or a settlement clarifies liability and launch timing, and consider reducing existing position sizes if portfolio cash flows rely materially on the title
• Watch operational signals closely—internal milestone confirmations, official guidance on an August 2025 early access launch, and any further internal communications—as continued delays would heighten downside risk to near-term revenue
• Treat allegations of a secret task force, data-theft claims and a CEO contract renewal in 2026 as governance red flags; press for clearer board-level disclosures or remediation before increasing exposure
• If maintaining exposure, employ downside protections (position sizing, options hedges or cash buffers) to mitigate the risk of an adverse verdict, prolonged development delays or reputational damage that could materially affect returns