CD Projekt to settle Cyberpunk 2077 investor lawsuit for $1.85 million
The suit alleged that the company misled investors over the state of the game
CD Projekt will pay $1.85 million to settle a class-action lawsuit alleging that it misled investors over the quality of Cyberpunk 2077.
The suit was filed in December 2020 by Rosen Law Firm, which was seeking damages for CD Projekt investors under federal securities laws.
After three delays, the highly anticipated RPG was released for PC and consoles with a host of technical problems, resulting in refunds being offered and the game temporarily being pulled from the PlayStation Store.
According to the lawsuit, CD Projekt made false or misleading statements and failed to disclose that Cyberpunk 2077 was “virtually unplayable” on consoles, and “when the true details entered the market… investors suffered damages.”
A consultant for the plaintiffs had previously estimated that total potential damages could be as high as $11 million.
The $1.85 million settlement, which represents 16.8% of the estimated recoverable damages, will result in compensation of approximately $0.49 per eligible share of CD Projekt securities.
It will be used to pay class members, settlement administration costs, taxes, attorney’s fees and costs, and incentive awards for the plaintiffs.
Plans to release a standalone Cyberpunk multiplayer game were axed because of 2077’s botched release, with CD Projekt instead choosing to invest its resources in improving the already available game.
Having since turned Cyberpunk 2077’s fortunes around, CD Projekt is reportedly planning to release a Game of the Year edition in 2023, featuring the game’s first and only expansion, the upcoming Phantom Liberty.
In October, CD Projekt Red outlined its development slate for the foreseeable future, including a Cyberpunk 2077 sequel, a new trilogy of Witcher games, a Witcher remake, and the studio’s first original IP.