Unknown Worlds Files Lawsuit Against Former Executives Over Data Theft and Sabotage

Key insights

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Legal Action

Unknown Worlds has filed a lawsuit against three former executives.

The studio alleges professional misconduct, intellectual property theft, and sabotage of development efforts for Subnautica 2.

Data Theft

Former executives allegedly downloaded 172,000 confidential files.

These files included sensitive business records, trade secrets, and proprietary intellectual property like game scripts, code, and design documentation.

It's like an employee taking a company's secret recipe book and blueprints when leaving.

Core Allegation. The lawsuit alleges the theft of 172,000 confidential files, including intellectual property.

Ownership and Compensation

The studio demands legal ownership of all IP created by the defendants during their tenure.

Unknown Worlds is also pursuing financial compensation for damages incurred due to the alleged actions of the former executives.

Additional Demands. In addition to injunctive relief, the studio is seeking financial compensation for damages caused by the executives' alleged sabotage of development efforts.

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Summary

Unknown Worlds has initiated legal action against three former executives—Charlie Cleveland, Ted Gill, and Max McGuire—following their dismissal from the studio. The lawsuit centers on allegations of professional misconduct, intellectual property theft, and the sabotage of development efforts related to the upcoming title, Subnautica 2. The studio contends that these individuals neglected their duties to pursue personal projects, which resulted in significant development delays.

The legal filing asserts that the former executives pressured the studio to release Subnautica 2 in an incomplete state to trigger $250 million in performance-based bonuses from the parent company, KRAFTON. Furthermore, the studio alleges that upon learning of their impending termination, the defendants illicitly downloaded 172,000 files containing sensitive business records, trade secrets, and proprietary intellectual property, including game scripts, code, and design documentation.

Through this litigation, Unknown Worlds seeks to compel the return of all misappropriated data and obtain a permanent injunction against the disclosure of its trade secrets. The studio is also pursuing legal ownership of all intellectual property created by the defendants during their tenure and is demanding financial compensation for the damages incurred due to their alleged actions. This case highlights ongoing tensions within the studio regarding project management and the protection of proprietary assets during high-stakes development cycles.