CD Projekt Red Faces Investor Lawsuit Over Cyberpunk’s Messy Launch

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CD Projekt Red Faces Investor Lawsuit Over Cyberpunk’s Messy Launch
Screenshot: CD Projekt Red / Kotaku

Two weeks after the troubled launch of Cyberpunk 2077, CD Projekt Red is facing a class action lawsuit. But the filing isn’t on behalf of players who may feel burned over a pre-release cycle that hid the state of the game on PlayStation 4 and Xbox One. Rather, it’s on behalf of investors.

Yesterday, the Manhattan-based Rosen Law Firm filed suit in California’s Central District “on behalf of persons or entities who purchased or otherwise acquired publicly traded CD Projekt Red securities between January 16, 2020, and December 17, 2020.” Translated: stockholders, specifically those who picked up stock in the past year or so.

An accompanying press release, issued yesterday afternoon, spells out the complaint:

(1) Cyberpunk 2077 was virtually unplayable on the current-generation Xbox or Playstation systems due to an enormous number of bugs; (2) as a result, Sony would remove Cyberpunk 2077 from the Playstation store, and Sony, Microsoft and CD Projekt would be forced to offer full refunds for the game; (3) consequently, CD Projekt would suffer reputational and pecuniary harm; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

The lead plaintiff in the case is Andrew Trampe, but the press release states the law firm is looking for other investors to join.

Cyberpunk 2077’s console launch has been mired in bugs and crashes, so much so that Sony pulled the game from the PlayStation store alongside offering refunds. Xbox and various physical retailers have also been offering refunds. The game has sold an estimated 13 million copies despite its technical problems, which CDPR management downplayed pre-release. The studio has been patching the game since launch.

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Comments

    • They have a case, it all depends on what their seeking.
      Either way the results are gonna be good for some and bad for others, the only difference is who and how much.

      • will we actually hear anything about it, though, i feel we always hear about class action lawsuit against a publisher/developer for a terrible launch/shoddy work conditions/pissed off investors etc yet we never hear anything back about them after the outrage dies down

        Even right now im seeing the salt levels on the main sub reddit and in the comments on other sites start to lower

      • “They have a case”, says namiwakiru with his US law degree.

        But regardless, I’m sure the lawyers here think they have a case. There’s a whole industry out there of speculative class action legal companies looking for these very opportunities. Their business model is to find cases they think they can win, or more typically settle, from which they can take a huge percentage in fees.

        There’s actually no difference between “who and how much” in this case, however. The only winners are the actual law firm. Either way the company loses, and when the company loses the shareholders lose.

        Even short term shareholders who stupidly bought high then sold into a falling market in a panic are ultimately going to be losers, regardless of the outcome of the case, because they’ll only get a percentage of their losses back due to high commissions.

  • What… you mean the same investors who most likely demanded the release of the game?

    Lets face it, reality is that gamers have no say in when a game gets released, we aren’t the ones who finances the game, those who control the purse strings have the biggest say, investors most likely wanted the game out in the lucrative holiday period.

    • It’s a little more complicated than that, investors are just one party in a contract that everyone has agreed to.
      CDPR and it’s key figures all have a part in to play in deciding and negotiating the terms of the deal, such as release targets and delays.

  • Made its money back in pre-orders alone, plus 13 million units sold.

    So they’re mad they didn’t get more return for investment?

    • No, a speculative class action law company saw an opportunity to extract some legal fees out of the small number of actual shareholders who bought into the company just before the launch of Cyberpunk then dumped their shares the second they saw a bit of negative publicity.

      Any investor who has actuially held their shares for more than 12 months is still ahead on their investment and will get squat from this lawsuit.

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