CD Projekt Settled Lawsuit Against Cyberpunk Launch, Paying Investors Just $ 1.85 Million
CD Projekt has agreed to terms of settlement with a group of investors who have sued the company over the disastrous launch of Cyberpunk 2077.
A new statement released today indicates that negotiations were concluded on Wednesday and that CD Projekt will only pay the plaintiffs $ 1.85 million.
“According to the Term Sheet, class members (including plaintiffs) must waive all claims against the company and members of its board of directors,” the statement said.
“In return, a settlement in the amount of US $ 1,850,000 will be paid to the group by the Company and its insurer.
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“As expressly stated in the Term Sheet, the performance of the Term Sheet does not imply any acknowledgment of liability on the part of the Company or any of the other defendants named in the case.”
By comparison, CD Projekt made more than $ 563 million in game sales in Cyberpunk’s month of release alone, and spent just $ 2.2 million on its Help Me Refund campaign designed to pay back users. players who were unable to claim one from the original supplier.
After three delays, the highly anticipated Cyberpunk 2077 was released in December 2020 with a host of technical issues, resulting in offered refunds, with the title being pulled from PlayStation Store and CD Projekt shares plummeting.
After the botched launch, a number of CD Projekt shareholders in the United States filed class action lawsuits accusing the company of violating federal laws by misleading investors about the quality of Cyberpunk 2077, causing them to suffer damage.
In May, CD Projekt confirmed that four class actions filed in the United States had been consolidated and that a lead plaintiff had been named ahead of possible joint legal proceedings. These are the procedures that were suspended following the settlement.
At the time, business analyst Mike Futter analyzed the financial report and noted that CD Projekt had identified approximately $ 51 million as “provisions for returns and expected adjustments from Cyberpunk 2077 sales-related license reports in its release window, in the fourth quarter of 2020. “
Futter suggested that this referred to total refunds from all sources, as well as estimated refunds in 2021 that were not completed in time for the 2020 report.
“This language is confusing as hell (and probably intentionally)”, Futter tweeted.
In June, CD Projekt said it believed Cyberpunk 2077’s performance had reached a “satisfactory” level, after six months of fixes designed to improve the game.
The company recently delayed this year’s PS5 and Xbox Series X / S versions of Cyberpunk 2077 to the first quarter of 2022. When released, they will be available as a free next-gen upgrade for players who own the editions. general.