A Delaware court ordered Krafton to reinstate one fired Unknown Worlds CEO, Ted Gill, and gave the option to reinstate the other two co-founders, Charles Cleveland and Adam McGuire, as part of resolving the Subnautica 2 earn-out dispute.

The ruling criticized Krafton’s leadership changes and cited AI-assisted strategy use, noting Gill’s termination and the role of AI input in decision-making tied to the case.

Krafton had acquired Unknown Worlds in 2021 for $500 million, with earnout terms linked to revenue through the end of 2025, now under legal review and potential changes to payout dynamics.

The story is developing, with further updates expected as the case advances through litigation and court rulings.

Context includes background on the author and editorial notes, but these do not affect the core news about the Subnautica 2 dispute.

The ruling suggests the legal battle will continue with possible damages, earnout adjustments, and other remedies to be determined in subsequent proceedings.

Observers are framing this phase as a shift from prolonged litigation to an open development journey for Subnautica 2, beginning with plans for May early access.

The court found that data downloads by the former leadership did not independently justify termination, even as concerns about after-acquired evidence influenced the decision.

The case highlights the broader trend of using generative AI in corporate workflows, including legal and strategic planning, sometimes without proper safeguards.

The dispute traces back to 2025 and culminated in the March 16, 2026 ruling, with ongoing legal proceedings to resolve damages and development delays.

Krafton did not provide comments on the ruling, and its site was reportedly offline during reporting.

PC Gamer’s coverage provides additional context on the broader Krafton–Unknown Worlds battle and standard reporting context.