In a statement published on December 25, 2020, the Warsaw-based company confirmed that it had received notice of a class-action lawsuit filed in California, USA on behalf of a group of investors.
The class action was filed by Rosen Law Firm, an investor rights law firm which is seeking damages for CD Projekt investors under federal securities laws.
The action is in relation to Cyberpunk 2077’s troubled launch, centred around criticism of the game’s performance on last-gen consoles and Cyberpunk’s removal from the PlayStation Store, which saw CD Projekt’s share price fall by 15% on December 18.
According to the lawsuit, CD Projekt made false and/or misleading statements and/or failed to disclose that Cyberpunk 2077 was “virtually unplayable on the current-generation Xbox or PlayStation systems due to an enormous number of bugs.”
It goes on to state that issues with the console version caused “reputational and pecuniary harm” due to Sony’s decision to remove Cyberpunk 2077 from the PlayStation Store, and other platform holders subsequently offering full refunds.
“As a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times,” the law firm claims. “When the true details entered the market… investors suffered damages.”
In a statement responding to the class action, CD Projekt said it would “undertake vigorous action to defend itself against any such claims.”
Cyberpunk 2077’s troubled launch resulted in CD Projekt shares tumbling and wiping over $1 billion off the wealth of the company’s founders.
At least two other law firms – one in the United States and another in CD Projekt’s native Poland – said they were investigating grounds for similar class-action lawsuits last month.
Despite its difficulties, Cyberpunk 2077 has enjoyed a very successful launch in terms of sales, with its 13 million copies sold representing one of the strongest debuts ever for a premium game.
Speaking to investors last month, CD Projekt’s joint-CEO Adam Kiciński apologised for Cyberpunk 2077’s console issues and said that the company hoped to rebuild the trust of its fanbase.
“After 3 delays, we as the Management Board were too focused on releasing the game,” he said. “We underestimated the scale and complexity of the issues, we ignored the signals about the need for additional time to refine the game on the base last-gen consoles.
“It was the wrong approach and against our business philosophy. On top of that, during the campaign, we showed the game mostly on PCs. This caused the loss of gamers’ trust and the reputation that we’ve been building through a big part of our lives.
“That’s why our first steps are solely focused on regaining those two things. We are concentrated on fixing Cyberpunk on last-gen consoles… We will do everything possible to prove that we stick to our values. We truly hope that our efforts will let us rebuild the trust we have lost.”