Delaware’s Court of Chancery ruled on March 16, 2026, that Krafton breached its agreement with Unknown Worlds’ sellers by terminating key employees without valid cause and improperly taking operational control of the Subnautica 2 studio. The Phase One judgment reinstated Ted Gill as CEO and returned authority over the game’s Early Access launch to him. It did not reinstate co-founders Charlie Cleveland and Max McGuire to their former roles, award the potential earnout, or resolve the remaining damages claims.
What did the judge rule in the Krafton and Unknown Worlds lawsuit?
Vice Chancellor Lori W. Will entered judgment for Fortis Advisors, which represented Unknown Worlds’ sellers, on their Phase One contract claims. The court concluded that Krafton violated the acquisition agreement by firing key employees without valid cause and improperly seizing operational control of the studio. The opinion’s conclusion states: “Krafton breached the EPA by terminating the Key Employees without valid Cause and by improperly seizing operational control of Unknown Worlds.” Read the March 16, 2026 opinion.
This was a liability ruling on Phase One, not a final resolution of every claim or a damages award. The court reserved questions about whether Krafton further breached its obligations and whether the sellers could recover lost earnout revenue for Phase Two.
Why did Krafton fire the Subnautica 2 developers?
In July 2025, Krafton terminated Unknown Worlds CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire. Krafton cited an alleged plan to release Subnautica 2 prematurely. The executives and Fortis disputed that account and argued the firings and interference with the studio were connected to a potential earnout payment.
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →#1 Best Overall
- 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
The court’s ruling was narrower than a finding about the game’s readiness: it held that Krafton lacked valid contractual cause for the terminations and improperly took operational control. It did not rule that Subnautica 2 was definitively ready to launch. Under the agreement, the launch decision rested with Gill regardless of the game’s development state.
Was Ted Gill reinstated as CEO of Unknown Worlds?
Yes. The court ordered: “Edward Gill is hereby reinstated as CEO of Unknown Worlds.” It restored Gill’s operational authority over the Subnautica 2 Early Access launch, barred Krafton from using corporate levers to impede that authority, and required Krafton to restore his access to the Steam publishing platform. The court’s opinion and order set out the remedy.
Did the judge order Krafton to rehire the Subnautica 2 founders?
No. The order did not return Cleveland and McGuire to their former peripheral roles. The court reasoned that reinstating Gill and restoring his bargained-for operational control vindicated the sellers’ contractual rights. The remedy therefore restored Gill’s position and authority without reinstating every terminated executive.
How did the ruling change the earnout deadline?
The court equitably extended the earnout testing period by 258 days, corresponding to the period from Gill’s ouster through the opinion date. The resulting base deadline is September 15, 2026. Fortis also retained a contractual option, subject to the agreement’s terms, to extend the period further to March 15, 2027. These dates extend the time for testing the earnout; they do not mean that any earnout has been paid or awarded. The opinion explains the extension.
Free tools Windows power users keep installed
One-click scans. No signup required.
Game Developer described the earnout as potentially worth up to $250 million. That figure is a reported maximum potential payment, not an amount awarded by the Phase One ruling. Game Developer’s coverage and follow-up also reported on the later procedural dispute.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened after the March ruling?
In April 2026, the former executives’ lawyers withdrew their contention that Krafton violated the March opinion by announcing a Subnautica 2 Early Access release date without Gill’s approval. They asked the court to treat related sanctions requests as moot. That withdrawal was not a final finding that Krafton violated the order, nor did it resolve the remaining Phase Two damages questions. Game Developer reported that the broader lawsuit remained unresolved as of its April 23 follow-up. Read the April 23 follow-up.
Quick Recap
Best Value
- Premium Collectible Design: Handcrafted from high-quality, ultra-soft plush fabric with fine stitching and lifelike details—created as a decorative display piece
- Perfect for Home & Office Décor: Adds charm to shelves, desks, nightstands, or display cabinets; ideal for fans of kawaii, cottagecore, modern minimalism, or character-inspired interiors
- Safe & Durable Materials: Filled with hypoallergenic polyester fiber; surface wipeable for easy maintenance. Designed for long-term display, not rough handling
- Thoughtful Gift for Collectors: A unique present for birthdays, holidays, or self-care moments—ideal for anime fans, plush collectors, or anyone who appreciates tactile art
- For Display Only – Not a Toy: Intended exclusively for adults aged 14+
Rank #4
- Iconic Deep-Sea Gaming Design: Bring the thrill of the ocean depths into reality. Inspired by the mysterious creatures of Subnautica, this expertly crafted plush figure captures the unique features of the deep-sea leviathan, making it a must-have piece for every dedicated gamer and ocean explorer enthusiast.
- Premium Softness & Comfort: Crafted with high-quality, ultra-soft fabric and stuffed with high-density premium cotton filling. This huggable cushion offers an exceptionally smooth tactile experience, perfect for relaxing on the couch during intense gaming sessions or long office hours.
- Versatile Home & Office Decor: Beyond a gaming collectible, this striking deep-sea creature serves as an eye-catching decorative piece. Add a touch of sci-fi adventure to your living room sofa, bedroom bedding, gaming setup, desk space, or bookshelf display.
- Perfect Collectible Gift for Gamers: Looking for a unique surprise for a gaming fan? This authentic creature plush pillow makes an extraordinary gift for friends, family, adults, and gaming enthusiasts on birthdays, holidays, or any special celebratory occasion.
- Durable Craftsmanship & Easy Care: Features meticulous stitching and reinforced seams to ensure long-lasting durability for daily hugging and display. Designed for low maintenance, it is easy to spot clean with a damp cloth to keep its vibrant ocean colors looking fresh.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
