CD Projekt has entered settlement talks with investors who sued over its botched Cyberpunk launch
Company was accused of violating federal laws by misleading shareholders over the game’s quality
CD Projekt has entered settlement negotiations with a group of investors who sued the company over Cyberpunk 2077’s disastrous launch last year.
Following three delays, the highly anticipated RPG released in December 2020 with a host of technical problems, resulting in refunds being offered, the title being pulled from the PlayStation Store and CD Projekt shares tumbling.
Following the botched launch, a number of CD Projekt shareholders in the US filed class action lawsuits accusing the company of violating federal laws by misleading investors over the quality of Cyberpunk 2077, causing them to incur damages.
In May, CD Projekt confirmed that four class action lawsuits filed in the US had been consolidated and that a lead plaintiff had been appointed ahead of potential common court proceedings.
But in a regulatory update on Wednesday, CD Projekt said it had been informed by its law firm that the US District Court for the Central District of California “had suspended proceedings concerning the motion to dismiss due to the parties having entered into negotiations concerning a potential settlement”.
The filing continued: “Should a consensus be reached with regard to the conditions of the potential settlement, the parties will file for its approval by the Court.
“The decision on whether to approve the settlement and permit its implementation shall be issued by the Court once certain additional formal conditions are satisfied.
“It should also be noted that entering into negotiations concerning a potential settlement should in no way be construed as acceptance by the Company or members of its Management Board of any allegations expressed in the plaintiffs’ court filings.”
In June, CD Projekt said it believed Cyberpunk 2077‘s performance had reached a “satisfying” level, following six months of patches designed to improve the game.
The company recently delayed the PS5 and Xbox Series X/S versions of Cyberpunk 2077 from this year to the first quarter of 2022. When they’re released, they will be available as a free next-gen upgrade for players who own the current-gen editions.
CD Projekt president Adam Kiciński discussed the latest Cyberpunk 2077 delay in a November interview with Polish economic newspaper Rzeczpospolita.
“The decision to postpone the next-gen version of Cyberpunk was a difficult one, but we are confident that it was the right one, especially since it was clearly recommended by our development team,” he said.
“We need the extra time to fine-tune the visuals and performance of the game to be as high quality as possible throughout the game.”