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Subnautica 2 Legal Battle Escalates: Unknown Worlds Sues Co-Founders

by ytools
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The legal battle surrounding Subnautica 2 is intensifying as the game’s co-founders, Charlie Cleveland, Max McGuire, and Ted Gill, find themselves at the center of a complex lawsuit filed by Unknown Worlds, the studio they co-founded. This lawsuit comes on the heels of a similar legal action from KRAFTON, the parent company of Unknown Worlds. KRAFTON had filed its own lawsuit against the trio, alleging abandonment of their roles in the development of Subnautica 2.
Subnautica 2 Legal Battle Escalates: Unknown Worlds Sues Co-Founders
Now, Unknown Worlds has joined the fray, filing its own legal complaint, which includes evidence in the form of Slack messages intended to support KRAFTON’s claims.

The lawsuit from Unknown Worlds mirrors many of the allegations already made by KRAFTON. It accuses Cleveland and McGuire of neglecting their responsibilities and moving on to personal projects while the rest of the team continued working on the game. This, the suit claims, severely impacted the development of Subnautica 2. The co-founders are also accused of pushing for a rushed release, motivated by a lucrative $250 million bonus tied to the game’s release, even if it meant compromising the quality of the game and disappointing loyal fans. According to the lawsuit, this self-serving push led to a version of the game that was “underdeveloped and had received a litany of disappointing reviews.” This marks the latest chapter in a saga that has been ongoing for months.

Since the initial lawsuit filed by KRAFTON, Cleveland, McGuire, and Gill have kept a low profile, with no new updates or statements to further explain their side of the story. The motivations behind the new lawsuit from Unknown Worlds remain unclear, and while it seems to be yet another attempt by KRAFTON to apply pressure, there are also indications that some current employees at Unknown Worlds may be genuinely upset with their former leaders. This ongoing legal drama raises more questions than answers, and the truth behind these allegations may remain hidden from public view for the foreseeable future.

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2 comments

Fanat1k September 11, 2025 - 3:01 pm

I mean, Subnautica was awesome, but looks like these guys were only in it for the bonus. 🙄

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DevDude007 October 29, 2025 - 4:06 pm

The game was fine, but if the co-founders were just after their payday, that sucks

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