Around this time last year, a group of investors filed a class action lawsuit CD project Red on the disastrous start of Cyberpunk 2077, said the game was “virtually unplayable due to an enormous number of bugs on current generation Xbox or Playstation systems.”
In the class action lawsuit filed on behalf of investors by Manhattan-based Rosen Law Firm in California’s Central District Court, it was argued:
(1) Cyberpunk 2077 was practically unplayable on the current generation Xbox or Playstation systems due to an enormous number of bugs; (2) As a result, Sony would remove it Cyberpunk 2077 from the Playstation Store, and Sony, Microsoft, and CD Projekt would be forced to offer full refunds for the game; (3) as a result, CD Projekt would suffer reputational and financial damage; and (4) as a result, defendants’ statements about its business, operations and prospects have been materially false and misleading and / or unfounded at all relevant times. When the real details hit the market, the lawsuit claims that investors have suffered damage.
Twelve months later and the case is settled with CDPR make a statement today that is:
“In the course of negotiations about a possible settlement agreement in proceedings pending before the US District Court for the Central District of California (hereinafter referred to as”the court“), On December 7, 2021, a proposal was formulated on key points which – if agreed – would form the basis for an anticipated written settlement agreement claims against the company and the members of the Management Board. In addition, under the terms of the agreement, the Company and its insurer, Colonnade Insurance SA, would receive a severance payment of $ 1,850,000 (one million eight hundred and fifty thousand) to the class.
With regard to the foregoing information, the company’s board of directors would like to announce that upon conclusion of negotiations on December 15, 2021 (those of the company on December 16 as “the term sheet“), In which the essential provisions of the settlement agreement are stipulated. The term sheet stipulates that the settlement includes all parties to the case (including members of the group).
CDPR then lists the reasons for the settlement, with the front runner being “the length and cost of further legal proceedings in the US”:
As expressly stated in the term sheet, the execution of the term sheet does not imply an admission of any responsibility on the part of the company or any of the other defendants mentioned in the case.
The Company wishes to announce that its decision to enter into this Settlement Agreement was based on (i) the duration and costs associated with additional legal proceedings in the United States that may arise regardless of the findings of the court; (ii) acceptance by the Company’s insurer of the main provisions of the Settlement Agreement; (iii) the statements of the US law firm representing the Company and the other defendants named in the case who recommend the adoption of the Agreement; (iv) general US practice of resolving such disputes through an out-of-court settlement.
A reminder that this class action lawsuit was not brought on behalf of fans or those who bought the game on PS4 / Xbox One and were lumped together with something unplayable. It was only by and for investors.
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