CD Projekt Red Settles Class-Action Lawsuit With Investors

After the troubled launch of Cyberpunk 2077, CD Projekt Red was dealt with a variety of different issues. The game was pulled off of the PlayStation Store, the company was investigated by the Polish Office of Competition and Consumer Protection, and they’ve had to deal with lawsuits filed against them. One of the lawsuits was by group of investors. They believed that CD Projekt Red “mislead” them and that the game that was presented was “materially false” because of how poor the game ran on PlayStation 4 and Xbox One. Last week, CD Projekt Red said that the company was entering negotiations to settle class-action lawsuit. Earlier this week, it was revealed that the lawsuit with the investors has been settled. CD Projekt Red has agreed to pay $1,850,000.

The settlement reads “In the framework of negotiations concerning a potential settlement agreement in a case pending before the U.S. District Court for the Central District of California (hereinafter referred to as “the Court”), a proposal regarding key terms, which – if agreed upon – would provide the basis for a prospective written settlement agreement was officially formulated on 7 December 2021. According to these terms, members of the class (including the plaintiffs) would relinquish all claims against the Company and members of its Management Board. Furthermore, under the agreement, a settlement in the amount of 1 850 000 (one million eight hundred and fifty thousand) USD would be paid out to the class by the Company and its insurer – Colonnade Insurance S.A.”

CD Projekt Red also revealed why they settled this lawsuit. “The Company wishes to announce that its decision  to enter into this settlement agreement was motivated by (i) the duration and costs related to further legal proceedings in the U.S., which might arise irrespective of the Court’s findings; (ii) acceptance of the key provisions of the settlement agreement by the Company’s insurer; (iii) opinion expressed by the U.S. law firm representing the company and the other defendants named in the case recommending acceptance of the agreement; (iv) the general practice in the U.S. of concluding such litigation by way of an out-of-court settlement.”

Last month, it was revealed that the next-gen patches for Cyberpunk 2077 and The Witcher III: Wild Hunt will be released next year in 2022. They were originally slated to come out in late 2021.

Paul David Nuñez: I love to escape my reality with books, music, television, movies, and games. If I'm not doing anything important, I'm probably doing one of these things. P.S. The Matrix Has You
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