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The dispute between Subnautica developer Unknown Worlds and its parent company, Krafton, has been settled. In July 2025, studio co-founder Charlie Cleveland announced that he and others had filed a lawsuit against Krafton. Reporting in July 2026 said the parties had reached a mutual settlement and agreed to dismiss all pending legal proceedings.
What did Charlie Cleveland announce?
In July 2025, Unknown Worlds co-founder Charlie Cleveland publicly said he and others had filed suit against Krafton, the studio’s parent company. He wrote: “We’ve now filed a lawsuit against Krafton: the details should eventually become (at least mostly) public – you all deserve the full story.”
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| 1 |
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Subnautica (PS4) | $23.46 | Buy on Amazon |
| 2 |
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Subnautica + Subnautica Below Zero Double Pack (Nintendo Switch) | $45.60 | Buy on Amazon |
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Subnautica - Xbox One | $69.14 | Buy on Amazon |
Krafton had acquired Unknown Worlds in 2021 and said at the time that the studio would remain an independent game-development studio wholly owned by Krafton. Unknown Worlds is best known for developing Subnautica.
What was the dispute about?
The conflict involved the removal of Unknown Worlds leadership, control of the studio and Subnautica 2, and contingent earnout compensation connected with the acquisition. Those were matters in dispute: allegations by either side should not be treated as facts established merely because a lawsuit was filed.
#1 Best Overall
- Descend into the depths of an alien underwater world filled with wonder and peril
- Craft equipment, pilot submarines and out-smart wildlife
- Explore lush coral reefs, volcanoes, cave systems, and more
- Underwater survival and exploration
The Delaware Court of Chancery addressed agreement and operational-control issues in a March 2026 ruling. The decision included remedies concerning Ted Gill’s authority and the early-access process for Subnautica 2. That court ruling was an interim development, not the final resolution of the dispute.
How did the case end?
Game Developer reported on July 1, 2026, that Krafton, Unknown Worlds, Ted Gill, Charlie Cleveland, and Max McGuire had reached a mutual settlement and agreed to dismiss all pending legal proceedings. The report quoted a statement from Krafton: “Krafton, Inc., Unknown Worlds Entertainment, and Ted Gill, Charlie Cleveland, and Max McGuire have reached a mutual settlement and agreed to dismiss all pending legal proceedings.”
Rank #2
- Survival is key: gather valuable materials, craft tools, manage your hunger and thirst, all while evading the dangerous wildlife that sees you as its next meal
- the mysteries submerged on planet 4546b: you came here in search of answers. You risked everything to get here and you will not leave until you have uncovered the truth…
- exploration: Delve into unique Aquatic and terrain biomes that will unlock not only materials, but the answers that you seek
- build your habitat: crafting and building the comforts of home here. These bases will be integral for your survival from not only the wildlife, but also the harsh environment around you
The same settlement reporting described expanded bonus compensation for studio staff and Gill’s departure from the studio leadership role. The full settlement agreement is not reproduced in that reporting, so its detailed terms are not established here.
What the announcement, court ruling, and settlement mean
| Development | What it establishes |
|---|---|
| July 2025 announcement | Cleveland publicly said that he and others had filed a lawsuit against Krafton; the announcement itself did not resolve the parties’ allegations. |
| March 2026 court ruling | The Delaware Court of Chancery ruled on agreement and operational-control issues, including remedies concerning Gill’s authority and the early-access process. It was not the final resolution. |
| Settlement reported in June–July 2026 | The parties agreed to settle and dismiss pending legal proceedings, according to a Krafton statement quoted by Game Developer. A settlement is not a judicial finding that either side’s allegations were true. |
Is the Krafton lawsuit still ongoing?
No. As reported on July 1, 2026, the parties had reached a mutual settlement and agreed to dismiss all pending legal proceedings. That reported settlement—not the earlier filing announcement or the March court ruling—is the latest outcome described here.
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Quick Recap
Rank #3
- Dive into a vast underwater world - sub Nautica's ocean range from shallow coral reefs to treacherous deep-sea trenches, lava fields, and bio-luminescent underwater rivers
- Scavenge, craft, and survive - after crash landing in your life pod, the clock is ticking to find water, food, and to develop equipment needed to explore as you collect resources from the ocean
- Construct underwater habitats - build Bases on the sea Floor, choosing layouts and components, and managing hull-integrity as depth and pressure Increase
- Unravel the mystery - signs abound that something is not right and you must Figure out what happened to this planet and what caused you to crash - can you find a way to make it Off the planet alive
- Disrupt the food Chain - lure and distract a threatening creature with a fresh fish, or simply swim as fast as you can to avoid gnashing jaws of roaming predators
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