CD Projekt is facing potential class action lawsuits over its alleged misrepresentation of Cyberpunk 2077.
As reported by theNew York times,one Warsaw-based law firmandCD Projektinvestor has announced it’s analysing grounds for legal action on the basis of “misrepresentation in order to obtain financial benefits”.
It said its investigation was related to “recent events” and particularlyCyberpunk’s removal from the PlayStation Store, which saw CD Projekt’s share price fall by 15% on December 18.
Sonyannounced the unexpected move on Friday, following a turbulent week forCD Projekt Redcentred aroundcriticism of Cyberpunk 2077’s performance on last-gen consoles.
Cyberpunk 2077’s troubled launch has resulted in CD Projekt shares tumbling over the past week andwiping over $1 billion off the wealth of the company’s founders.
A second, New York-based law firm has also announced an investigation into the Cyberpunk developer.
Wolf Haldenstein Adler Freeman & Herz LLPsaidon Friday it was looking into potential securities claims on behalf of shareholders of CD Projekt, “resulting from allegations that CD Projekt may have issued materially misleading information to their shareholders and investing public.”
Timeline: Cyberpunk’s troubled launch
It said: “If you have incurred losses in the ADR’s of CD Projekt SA, please contact Wolf Haldenstein to learn more about your rights as an investor in CD Projekt SA.”
According toa law firm specialised in video games, CD Projekt could be accused of employment of “manipulative and deceptive practices.”
According to SEC rule 10b-5, it is unlawful for any person, directly or indirectly, “to engage in any act, practice, or course of business which operates… as a fraud or deceit upon any person, in connection with the purchase or sale of any security.”
Fraud on the market could be in play depending on the facts of the matter (and international jurisdictions, etc.)SEC Rule 10b-5pic.twitter.com/0kYrfpkCW7
Speaking to investors this week, CD Projekt’sjoint-CEO Adam Kiciński apologised for Cyberpunk 2077’s console issuesand said that the company hoped to rebuild the trust of its fanbase.
“After 3 delays, we as the Management Board were too focused on releasing the game,” he said. “We underestimated the scale and complexity of the issues, we ignored the signals about the need for additional time to refine the game on the base last-gen consoles.
“It was the wrong approach and against our business philosophy. On top of that, during the campaign, we showed the game mostly onPCs. This caused the loss of gamers’ trust and the reputation that we’ve been building through a big part of our lives.
“That’s why our first steps are solely focused on regaining those two things. We are concentrated on fixing Cyberpunk on last-gen consoles… We will do everything possible to prove that we stick to our values. We truly hope that our efforts will let us rebuild the trust we have lost.”
