South Korean publisher Krafton and its subsidiary Unknown Worlds Entertainment reached a mutual settlement on Wednesday, July 1, 2026, resolving a year-long legal dispute over employee bonuses and leadership control for the upcoming game Subnautica 2.
As reported by Bloomberg, the agreement dismisses all pending legal proceedings in the Delaware Court of Chancery.
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The entire staff at Unknown Worlds will receive their multi-million dollar bonuses in three annual installments while CEO Ted Gill voluntarily steps down from his position.
"Krafton, Inc., Unknown Worlds Entertainment and Ted Gill, Charlie Cleveland, and Max McGuire have reached a mutual settlement and agreed to dismiss all pending legal proceedings," said Krafton, Inc.
The publisher confirmed the dismissal of the lawsuit, which was originally filed by Fortis Advisors, LLC on behalf of the former shareholder representatives.
Krafton noted that the development of the sequel remains the core focus moving forward.
"Unknown Worlds and Krafton are focused on supporting Subnautica 2, its Early Access journey to the full 1.0 release and the global community that has made the franchise so special.
Unknown Worlds will continue leading development, with Krafton providing support for the success of the game," said Krafton, Inc.
Leadership Change and Bonus Details
Following the settlement, outgoing CEO Ted Gill explained to Bloomberg that the studio required a fresh direction to sustain its future development milestones.
"New leadership is the best way for the studio to move forward," said Ted Gill.
