Multiple litigations over Cyberpunk 2077 - The CD Projekt response
"Investors are turning against the company"
The First Steps of Legal Action
According to a report in the New York Times, the bad news has no end for CD Projekt, since the case of Cyberpunk 2077 will probably reach the courts. More specifically, a law firm based in Warsaw, Poland, in cooperation with a company investor, is considering legal action on the basis of "deception in order to achieve financial benefits".
The investigation is reportedly related to recent events and was specifically triggered by the removal of the game from the PlayStation Store on December 18th. At the same time, the report notes that the law firm ‘Wolf Haldenstein Adler Freeman & Herz LLP’ based in New York has started an investigation on the same issue, by the investors of CD Projekt.
The Polish development team is accused of leaking "substantially misleading information to its shareholders and the investing public" and could face mass litigation.
Richard Hoeg, a lawyer specializing in video games and pop culture in general, explained that CD Projekt could indeed be accused of adopting “misleading practices”, in his relevant tweet.
CD Projekt in Court
So, CD Projekt will have to defend itself in court because of Cyberpunk 2077 after all. In the end, the Polish company is facing not one, not two, but four lawsuits from its investors.
In particular, two investors from Poland and the American law firm Wolf Haldenstein Adler Freeman & Herz LLP filed a total of three lawsuits against CD Projekt, while the global law firm for investor rights Rosen Law Firm is preparing a mass lawsuit in which it calls for all investors are involved.
The reason for the legal trouble, of course, has to do with the state of the game, which suffers from many technical problems, especially in Xbox One and PS4, the consoles of the previous generation. According to analyst Daniel Ahmad, the argument is that the company misled investors about the quality of the game on previous-generation consoles, which led to negative reactions from gamers and, of course, to the detriment of the investing public.
The basis for this comes after
CDPR releasing the game despite being unplayable for the majority of players.
The negative impact of Sony delisting/refunds on all platforms.
CDPR admitting they did not show last-gen footage as they had not finished that ver yet.
CD Projekt’s Response
Speaking to Bloomberg, the leadership of CD Projekt said that it will defend itself "strongly" against the categories of investors.
Of course, the case will definitely take some time to unfold and is expected to have a domino effect for the creators of Cyberpunk 2077, as well as for the other gaming companies and the state of their products.
But, fixing Cyberpunk 2077 technical issues is no longer the only headache for CD Projekt, which has seen its shares fall by at least 40%, losing more than $ 1 billion.
The company has promised to "restore its reputation at all costs".