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US court rules against S Korean gaming company and its AI-hatched takeover plan

  • Vice Chancellor Lori W. Will ruled that Krafton must reinstate Ted Gill and restore his control over Subnautica 2's Early Access release plans on March 16, 2026.
  • Court findings show the publisher enacted a plan that Krafton CEO Changhan Kim led to avoid the earnout, including consulting ChatGPT during Project X and breaching the employment agreement by firing key employees without valid Cause after the July 1, 2025 Board resolution.
  • Deal documents show that Krafton paid $500 million in 2021, with an earnout tied to a $69.8 million revenue threshold and $3.12 per additional dollar, projecting over 1.67 million copies sold.
  • The court's ruling also extended the period to earn a $250 million payout, while Krafton told Kotaku it 'respectfully disagree with today's ruling' and is evaluating options as litigation continues.
  • Nearly nine months after the July 1, 2025 firings, the ruling leaves Subnautica 2 release timing and earnout threshold unresolved while noting former employees returned downloaded studio data amid the dispute.
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Kotaku broke the news in on Monday, March 16, 2026.
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