Krafton Sues Former Subnautica 2 Developers Over Data Theft, Misconduct, and Absenteeism

The ongoing legal battle over Subnautica 2 has escalated, as parent company Krafton—via its subsidiary, Unknown Worlds Entertainment—has filed a countersuit against former studio executives Charlie Cleveland, Max McGuire, and Ted Gill. The move appears to be a thinly veiled retaliation after the trio sued Krafton in July, alleging the company delayed the game’s release and ousted them to avoid a $250M contractual payout.

Krafton’s latest filing doubles down on its claim that the executives neglected their roles, accusing them of abandoning development and the Subnautica community. The complaint alleges Cleveland “strayed” from responsibilities (citing LinkedIn activity and developer remarks), McGuire prioritized work on Moonbreaker over his technical director duties, and all three failed to hold board meetings or address the game’s reported stagnation. Redacted emails and playtester feedback are cited as evidence the early-access build only achieved 12% of its 1.0 goals, with Krafton insisting the executives pushed for a rushed 2025 launch solely to trigger their $250M earnout clause.

The countersuit also accuses the trio of downloading “Company Confidential Information” before their termination—an act Krafton dramatically labels a “trifecta of mischief” and “data theft.” Meanwhile, the company controversially claims the Subnautica subreddit celebrated the executives’ firing, describing the community’s reaction as “overwhelmingly positive.” This sharply contradicts vocal fan backlash, including a 59K-upvoted boycott thread and widespread distrust toward Krafton’s motives.

The executives’ original lawsuit, meanwhile, alleges Krafton sabotaged Subnautica 2 by halting marketing and publishing support. Legal filings will continue through November, but the court of public opinion has already rendered a messy verdict: players blame both sides for derailing a beloved franchise.