The studio CD Projekt Red has announced that they are being sued again in the USA. A second class action lawsuit has been filed against them in a district court in California. It again concerns developers telling shareholders before the launch that Cyberpunk 2077 runs well on PS4 and Xbox One. The release later turned out to be buggy. Some even consider Cyberpunk 2077 unplayable on last-gen consoles.
This is the situation: As a publicly traded company, CD Projekt Red is obligated to inform investors when certain things happen that could impact the value of the company.
On January 15, CD Projekt Red therefore announced that a second class action lawsuit had been filed against them. Apparently, the exact same circumstances exist as in the first class action lawsuit, which was presented to the public at Christmas 2020.
Once again, a law firm is suing on behalf of shareholders who hold two different securities in CD Projekt Red.
CD Projekt Red states regarding the allegations that these are the same allegations discussed at Christmas. At that time, the law firm “Rosen Law Firm” had filed a lawsuit against CD Projekt Red.
Once again, CD Projekt Red has stated that they will vigorously defend against the allegations.
It is about false statements regarding the status on PS4, Xbox One
This is what the class actions are about: “The Rosen Law Firm” has named a number of quotes from investor conferences in their indictment from December 2020, in which CD Projekt Red employees assured that Cyberpunk 2077 was on schedule, there were no issues with the versions for PS4 and Xbox One, and the game would run “great” on every platform.
However, after the release, there were such significant issues on PS4 and Xbox One that Sony and Microsoft even had to offer full refunds for Cyberpunk 2077. This led to losses in stock prices.
The law firm argues that the developers misrepresented “the reality” to the shareholders, resulting in damages to them, and they are seeking compensation. The amount has not yet been disclosed.
In addition to the class actions, CD Projekt Red also has to fear Polish consumer protection and trade supervision. The responsible ministry announced a week ago that it would scrutinize the company. Here, a high fine threatens:
