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Why a Judge Ordered Subnautica 2 CEO Ted Gill Reinstated

A Delaware court restored Ted Gill as Unknown Worlds CEO and extended the earnout testing period. Krafton and the former studio leadership later settled the dispute without disclosing terms.
From TheFinanceBase Team3 min to read
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Delaware’s Court of Chancery ordered Krafton to reinstate Ted Gill as Unknown Worlds’ CEO after finding that the company breached its acquisition agreement by terminating key employees without valid cause and improperly taking operational control. The March 16, 2026 ruling restored Gill’s authority over Subnautica 2’s early access launch and extended the earnout testing period. Krafton and the former studio leadership later settled the earnout dispute, but did not disclose the settlement terms.

What the court ordered

In a Phase One opinion in Fortis Advisors LLC v. Krafton, Inc., Delaware Court of Chancery Vice Chancellor Lori W. Will found that Krafton violated the equity purchase agreement (EPA) by terminating key Unknown Worlds employees without valid cause and improperly taking operational control. The court ordered Gill reinstated as CEO, restored his operational authority over the game’s early access launch, and required Krafton to restore his access to Steam’s publishing platform. It also barred Krafton from using corporate mechanisms to interfere with that authority. Read the court’s opinion.

Will wrote: “Edward Gill is hereby reinstated as CEO of Unknown Worlds, and his period of operational control under Section 2.7(f) of the EPA will be extended by the time that elapsed between his wrongful termination and his restoration.” The opinion’s conclusion describes the remedy as an extension of Gill’s contractual period of operational control.

Gill was restored; the co-founders were not

The order did not return Unknown Worlds co-founders Charlie Cleveland and Max McGuire to their former peripheral roles. The reinstatement remedy was specific to Gill and his authority. Game Developer’s coverage of the ruling reports that distinction.

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#1 Best Overall
Subnautica (PS4)
  • Descend into the depths of an alien underwater world filled with wonder and peril
  • Craft equipment, pilot submarines and out-smart wildlife
  • Explore lush coral reefs, volcanoes, cave systems, and more
  • Underwater survival and exploration

How the order changed the earnout period

The court extended the base earnout testing period by 258 days, from its original December 31, 2025 deadline to September 15, 2026. The court calculated the extension based on the time between Gill’s July 1, 2025 termination and the March 16, 2026 opinion. Under the agreement, Fortis Advisors retained an option to extend the period by a further six months, through March 15, 2027, if it gave written notice. The opinion sets out the extension.

The extension changed the time available for testing the earnout; it was not an award of the maximum earnout. The court reserved whether Krafton had impaired the earnout and whether damages were owed for later litigation.

Rank #2
Subnautica + Subnautica Below Zero Double Pack (Nintendo Switch)
  • Survival is key: gather valuable materials, craft tools, manage your hunger and thirst, all while evading the dangerous wildlife that sees you as its next meal
  • the mysteries submerged on planet 4546b: you came here in search of answers. You risked everything to get here and you will not leave until you have uncovered the truth…
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  • build your habitat: crafting and building the comforts of home here. These bases will be integral for your survival from not only the wildlife, but also the harsh environment around you
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

What happened after the ruling

The release-date dispute did not produce a lasting violation finding

After the opinion, Krafton and Unknown Worlds announced a May early access window. In an April 23 report, Game Developer said Gill and the other former executives no longer alleged that Krafton’s release-date announcement violated the March order. Their lawyer asked the court to cancel a sanctions hearing and treat related requests as moot. That side dispute should not be read as a lasting court finding that Krafton violated the order. Game Developer reported on the request.

The earnout litigation was later settled

Yonhap News Agency reported on July 1, 2026, that Krafton and the former Unknown Worlds leadership settled the earnout dispute and agreed to withdraw pending lawsuits. The report did not disclose the settlement terms or financial impact. The court’s reserved questions therefore should not be described as awaiting a Phase Two damages decision. Yonhap’s settlement report.

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Rank #3
Subnautica - Xbox One
  • Dive into a vast underwater world - sub Nautica's ocean range from shallow coral reefs to treacherous deep-sea trenches, lava fields, and bio-luminescent underwater rivers
  • Scavenge, craft, and survive - after crash landing in your life pod, the clock is ticking to find water, food, and to develop equipment needed to explore as you collect resources from the ocean
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What it meant for the game

Subnautica 2 entered early access in May 2026. Yonhap reported that more than four million copies had been sold following the launch as of July 1, 2026; the report did not provide a separate measurement methodology for that figure. Yonhap’s launch and sales report.

For players, the ruling’s direct relevance was governance: it restored Gill’s authority over the launch process. It did not decide the game’s quality, guarantee a particular development outcome, or disclose how much anyone received through the earnout settlement.

Quick Recap

Bestseller No. 1
Subnautica (PS4)
Subnautica (PS4)
Descend into the depths of an alien underwater world filled with wonder and peril; Craft equipment, pilot submarines and out-smart wildlife
$23.46
Bestseller No. 3

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