A law firm from New York has filed a class action lawsuit against CD Projekt Red. It concerns the game Cyberpunk 2077 and its performance on PlayStation 4 and Xbox One. The accusation is that CD Projekt Red deceived investors. An insider says this is the first of 4 class action lawsuits that are coming for the studio.
Who is suing? The class action is led by “The Rosen Law Firm” from New York. The law firm specializes in protecting the rights of investors who have been victims of securities fraud or misled by companies in any way.
The firm claims to be dedicated to returning investors the losses incurred because companies misrepresent how their business is performing.
This is what the class action is really about: The law firm represents investors who invested in CD Projekt Red between January 16, 2020, and December 17, 2020.
December 17 is likely a significant date as it was when it became known that Sony removed “Cyberpunk 2077” from the PS Store and offered full refunds to anyone who had bought it.
“Practically unplayable on PS4 and Xbox One”
The law firm claims that CD Projekt Red made false or misleading statements or failed to disclose information:
- They did not say that Cyberpunk 2077 is practically unplayable on Xbox One and PlayStation 4 because it has so many bugs
- Thus, Cyberpunk 2077 was removed from the PlayStation Store and Sony, Microsoft, and CD Projekt Red were forced to refund the purchase price of Cyberpunk 2077
- This resulted in damages to CD Projekt Red’s reputation and finances
- CD Projekt Red made false and misleading statements about their business and prospects at the relevant times. When the truth came to light, investors suffered damages
The law firm invites investors to join the class action and provides their contact address.
The full text of the class action can be found here (via scribd.com).
Is there more to come? Yes, it seems so. According to industry insider Daniel Ahmad, three other law firms are also preparing class action lawsuits or are at least considering it.
For example, the law firm Wolf Hadenstein Adler Freeman & Herz LLP has already announced that it will investigate the case. This is also a law firm specializing in such cases: They claim to have recovered a total of 9 billion US dollars for investors, consumers, and workers.
This is what it’s about: CD Projekt Red, as a publicly traded company, is obliged to answer to investors. This is why there have also been emergency conferences and calls recently.
The law firm states: Investors were misled about the state of Cyberpunk 2077. They were not sufficiently informed about how poorly the game actually performs on PS4 and Xbox One. Investors lacked information, for example, that no footage of Cyberpunk 2077 on PS4 and Xbox One was shown and that the console version was not provided to testers in advance for testing.
It specifically concerns certain statements made during investor calls. For example, during the last delay of Cyberpunk 2077 on October 28, it was said:
“I would not say that there is a problem because there is nothing wrong with the versions for PS4 and Xbox – optimization still needs to be done.”
We at MeinMMO already reported on December 9 that YouTuber SkillUp expressed concerns about the fact that there were no test versions of Cyberpunk 2077 for PS4 and Xbox One. Therefore, no tester in the world could tell buyers how well Cyberpunk 2077 would run on PS4 and Xbox One before its release.
This has turned into a serious problem in the last two weeks:
YouTuber finishes Cyberpunk 2077, skips test at launch – out of protest
