A lawsuit filed against studio CD Projekt Red by disgruntled investors, spurned by the rocky launch of Cyberpunk 2077, has been settled with a significant payment of US $1.85 million in damages.
The class-action lawsuit, filed in Manhattan on behalf of company investors, alleged CD Projekt Red knowingly released a ‘virtually unplayable’ game riddled with bugs, which forced several stores to delist the title and offer refunds to players. This was alleged to have damaged the reputation of the company, and caused financial harm to investors, who believed in CD Projekt Red’s work.
A year on from the filing, CD Projekt Red has chosen to end proceedings with a settlement agreement, paid for by the company’s insurer. In a statement shared on the CD Projekt Red website, the studio stated the reason for the settlement was largely monetary, as it did not wish to progress the case within the US court system. In addition, it accepted the provisions laid out by its insurer, and the recommendations of lawyers on both sides.
Everyone who purchased or held shares in CD Projekt Red during the 2020 period is eligible to apply for settlement funds, with the total amount being split amongst all investors. This will equate to around US $0.49 per eligible share.
At this stage, it doesn’t appear the settlement will massively impact the company and its day-to-day operation. CD Projekt Red currently has a number of major products in the works, including sequels to Cyberpunk 2077 and The Witcher, as well as other spin-offs and remakes. It likely hopes these projects will help to ‘right the ship’ and restore the company’s reputation as it rebuilds in the wake of the Cyberpunk 2077 disaster.
The conclusion of this particular class action will clear the way for the company to refocus on development – although CD Projekt Red likely has more hurdles to overcome as the dust of Cyberpunk 2077 clears. Regardless of what’s in store, we’ll hear more from the game in 2023, as its concluding Phantom Liberty expansion is set for launch this year.