A pre-trial brief filed by lawyers representing the ousted former heads of Subnautica 2 studio Unknown Worlds alleges that Krafton CEO Changham Kim was “desperate” to avoid paying them the bonuses required by their acquisition contract because of the “professional embarrassment” that would result from the perception that he overpaid for the studio. The filing claims Kim went so far as to consult with AI to figure a way out of paying, but even ChatGPT told him he was probably stuck.
The legal dispute between Krafton and Subnautica designer and director Charlie Cleveland, CEO Ted Gill, and studio co-founder Max McGuire has been dragging on since July, when all three very suddenly left their positions. While the departures were initially presented as amicable, it quickly became clear that it was anything but. Legal action was filed by both sides and it’s gotten very messy: Krafton initially said the three were fired because of the state of Subnautica 2 and their insistence on releasing it before it was ready, but in September it seemed to drop that claim in favor of focusing on allegations the founders had “deceived” Krafton, including that they’d downloaded confidential information relating to Subnautica 2—which only came to light after they’d been dismissed.
“Already concerned that Krafton had paid too much to acquire Unknown Worlds, Kim feared that making any earnout payment to Founders would earn him a reputation as a pushover and endanger his position as CEO,” it states. “Desperate to avoid such a professional embarrassment, Kim obsessed over finding a way to avoid Krafton’s obligation to pay the earnout.”
A footnote in the filing states that “Krafton did not produce the ChatGPT conversations and, when pressed, confirmed that they no longer exist,” and the company seemed to deny the allegations entirely in a statement provided to Kotaku. “This claim is simply a distraction from their own efforts to destroy evidence, such as Charlie’s reminder to the other Key Employees (Max and Ted) to delete anything ‘incriminating’ from their own ChatGPT accounts,” a representative told the site.
