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CEO Reinstated in Game Studio Dispute
16 Mar
Summary
- Judge reinstated CEO Ted Gill less than a year after his firing.
- Krafton allegedly used AI chatbot to devise firing strategy.
- Lawsuit centered on a $250 million bonus tied to revenue targets.
A Delaware Chancery Court judge has ordered Krafton Inc. to reinstate Ted Gill as CEO of its subsidiary Unknown Worlds Entertainment. This decision comes less than a year after Gill, along with co-founders Charlie Cleveland and Max McGuire, were fired last summer.
The judge, Lori W. Will, ruled that Krafton breached its contract with the Unknown Worlds leadership by terminating the executives. As a remedy, Gill is to be reinstated with full operational authority.
The dispute stemmed from a $250 million bonus stipulated in Krafton's 2021 acquisition of Unknown Worlds. This bonus was contingent on the company meeting certain revenue targets by the end of 2025.
Krafton's firing of the executives also led to the delay of Subnautica 2, which was slated for an early access release. The executives subsequently filed a lawsuit, alleging the game's delay was a tactic to circumvent paying the bonus.
According to the ruling, Krafton CEO Changhan Kim expressed regret over the bonus payout and consulted an AI chatbot for a strategy to facilitate a corporate 'takeover.' Krafton acknowledges the ruling but is considering its next steps, while litigation over damages is ongoing.
