Subnautica 2 Developer Unknown Worlds Sues Former Leadership

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The development studio known as Unknown Worlds, responsible for creating the Subnautica series, has initiated a legal action against three of its ex-executives. They are being accused of leaving the company prematurely, exploiting private information, and orchestrating a plan to swiftly launch Subnautica 2 with the intent of receiving a substantial financial reward by releasing it before it was ready.

The lawsuit, initiated on August 15, aims at Charlie Cleveland, Adam “Max” McGuire, and former CEO Ted Gill, all of whom were let go from their positions on July 1, 2025. As stated in the complaint, these individuals allegedly neglected their roles as leaders for Subnautica 2’s creative and technical aspects, and simultaneously downloaded numerous company files prior to their dismissal, which spanned over several days.

The disagreement can be traced to Krafton’s 2021 acquisition of Unknown Worlds for approximately $500 million, with an extra $250 million in potential earnings contingent upon the successful creation and launch of Subnautica 2. As key figures in the franchise’s future at that time, Cleveland, McGuire, and Gill were set to receive around 90% of this additional earning.

Rather than continuously working on it, Unknown Worlds asserts that Cleveland moved towards filmmaking, McGuire dedicated himself to his primary interest Moonbreaker, while Gill let the studio progress without close supervision. The development of Subnautica 2 fell significantly behind schedule, with Krafton assessments stating that the 2025 builds were “not yet ready” and lacked essential gameplay elements.

By 2025, as the deadline for the earnout neared, the lawsuit claims that three executives pressured Krafton to launch Subnautica 2 prematurely, even though both internal and external feedback suggested the game might harm the franchise. If Krafton refused, they reportedly threatened to independently publish the game in order to secure revenue within the earnout period.

Unknown Worlds claims that the trio secretly copied a vast amount of confidential company data before leaving, with McGuire allegedly downloading close to 100,000 files, Cleveland about 72,000, and Gill exporting his entire email account. The studio asserts that the three individuals have failed to hand back their devices or disclose the details of the information they kept, and moreover, they allegedly threatened to destroy all the data entirely.

Unknown Worlds is pursuing orders (injunctions), retrieval of sensitive information, financial compensation, as well as an injunction to stop any future usage or exposure of their documents, due to the alleged delays, damage to reputation, and breach of duty they claim were caused by the defendants.

Simultaneously, a group comprising Cleveland, McGuire, and Gill (represented by Fortis Advisors on behalf of former shareholders) have initiated a lawsuit against Krafton. Their goal is to be reinstated within the company and receive the earnout payment that was due. This legal matter is scheduled for an accelerated trial in November.

Most fans seem to be supportive of the company’s decisions regarding the dismissals, as expressed on Reddit. One user articulated a common sentiment: “We’re defending the game here, not the executives. The ones who were let go had no influence over the product whatsoever.

A legal action was initiated by Unknown Worlds on August 15, aiming to hold founders Charlie Cleveland, Max McGuire, and previous CEO Ted Gill accountable for leaving their positions at the studio following its takeover by Krafton, allegedly without proper notice or fulfillment of their contractual obligations.

This lawsuit is in addition to the others involving Krafton and the former leadership.

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2025-08-20 19:18