CD Projekt RED will finally pay up the Cyberpunk 2077 investor lawsuit which is alleged to have misled investors about the state of the game at that time.
CDPR will be settling the class-action lawsuit for $1.85 million (Thanks Ars Technica!). Interestingly enough, the payment is not that much now compared to the original estimate which was as high as $11 million. This number was calculated by a consultant for the plaintiffs.
The lawsuit was filed way back in December 2020 by Rosen Law Firm. It was to seek damages for CD Projekt investors under federal securities laws. They believed they were misled by CDPR and that cost damages.
For gamers who totally ignored what happened on day one, Cyberpunk 2077 was the highly-anticipated RPG for PC and consoles but it had tons of problems when it got launched. This resulted in numerous refunds and Sony Interactive Entertainment pulled it from the PlayStation Store. It got that bad at that time.
The $1.85 million is the new settlement for the lawsuit, which represents 16.8 percent of the estimated recoverable damages. This will now compensate approximately $0.49 per eligible share of CD Projekt securities.
Various individuals and groups will be paid which includes class members, settlement administration costs, taxes, attorney’s fees, and costs, and incentive awards for the plaintiffs.
With this, CDPR will move on and finally focus on development again for its future projects like the next Cyberpunk 2077 expansion and The Witcher titles.
