Unprecedented Legal Battle: Unknown Worlds Sues Ousted Subnautica 2 Founders Over Data Theft

The highly anticipated release of Subnautica 2 has been overshadowed by a dramatic and escalating legal conflict. In a shocking turn of events, Unknown Worlds Entertainment—the very studio that developed the beloved survival series—has filed a lawsuit against its own ousted leadership team. This countersuit, which follows a previous lawsuit filed by the founders against Unknown Worlds’ parent company, Krafton, Inc., alleges that the former executives stole confidential company data and “sabotaged” the game’s development. This legal saga has opened a deep rift between the original creators and the studio they founded, raising serious questions about the future of the franchise.

A Complex Dispute: The $250 Million “Earnout” at the Heart of the Conflict

The legal fireworks began when the three former leaders of Unknown Worlds—Charlie Cleveland (Creative Director), Max McGuire (Co-founder), and Ted Gill (CEO)—were terminated by Krafton. The executives then filed a lawsuit against Krafton, claiming that their dismissal and the subsequent delay of Subnautica 2‘s Early Access release from 2025 to 2026 were a calculated effort by the publisher to avoid a massive $250 million bonus payout. This “earnout” was part of the 2021 acquisition agreement, and the trio’s lawsuit alleged that Krafton had a “months-long campaign to delay” the game in order to avoid paying the substantial bonus, of which they would have received 90%.

In response, Krafton, and now Unknown Worlds itself, have hit back with a lawsuit of their own. The new complaint filed by Unknown Worlds against its former leadership claims that the trio abandoned their responsibilities, with Cleveland and McGuire allegedly focusing on personal projects outside of Subnautica 2. The lawsuit asserts that this “absenteeism” caused significant delays and a “degraded” project scope, arguing that the game was not in a state to be released in 2025 as the founders claimed. The lawsuit goes on to allege that the former executives insisted on releasing the incomplete game to secure their bonus, even threatening to self-publish it if Krafton refused to comply.

Espionage and Sabotage: New Allegations of Data Theft

The most explosive new detail in the lawsuit is the allegation of data theft. Unknown Worlds claims that in the days leading up to their termination, Cleveland, McGuire, and Gill downloaded a staggering volume of confidential company information, including tens of thousands of emails, game design files, and proprietary intellectual property. According to the lawsuit, these downloads triggered internal IT alerts, and when the company demanded the return of the files, the former executives “refused to provide access to their devices.” The complaint even uses the phrase “trifecta of mischief” to describe the alleged actions, painting a picture of corporate espionage.

This accusation adds a new, and deeply personal, layer to the conflict. Unknown Worlds’ lawsuit argues that the former leaders are now using this confidential information to fuel their own legal battle and have “improperly used or disclosed” the information to members of the press. This has created a tense and acrimonious atmosphere, with both sides trading accusations of greed, betrayal, and broken promises.

Impact on Subnautica 2 and the Gaming Community

For the thousands of fans eagerly awaiting Subnautica 2, this legal war is a major blow. The game has been delayed indefinitely, and the development team is now caught in the crossfire of a high-stakes corporate dispute. The public accusations from both sides—with one claiming that the game was ready for release and the other arguing it would have caused “irreversible harm to the entire franchise”—have created confusion and distrust within the community. While the developers still working on the game have tried to reassure fans that the project remains a priority, the ongoing legal drama threatens to overshadow all future announcements and could negatively impact the game’s launch.

The lawsuit is not just a battle over money; it’s a fight for control and the public narrative. Krafton is using Unknown Worlds to defend its decision to oust the founders, claiming that it was a necessary step to protect the quality of the game. Meanwhile, the founders are fighting to reclaim their positions and their promised bonus. As the case moves through the court system, the fate of the franchise hangs in the balance, and the once-harmonious relationship between creators and their company has been tarnished forever.