The Reason CD Projekt Red May Soon Be The Target Of A Class Action Lawsuit
CD Projekt Red may soon be facing a class action lawsuit for the troubles surrounding Cyberpunk 2077. The Polish developer has been in hot water with fans and gaming industry giants alike since Cyberpunk 2077's release on Dec. 10, as players discovered numerous glitches and poor performance on previous-generation consoles, the PlayStation 4 and the Xbox One.
As reported by The New York Times, Mikołaj Orzechowski, a Warsaw attorney and CD Projekt Red investor, posted on Polish financial website Bankier about a potential lawsuit against CD Projekt Red. "We are currently analyzing, together with the law firm's team, the grounds for bringing a class action together with the notification of the possibility of committing a crime under Art. 286 of the Penal Code. — misrepresentation in order to obtain financial benefits," the post read.
At the same time, according to a press release shared by Yahoo Finance, New York firm Wolf Haldenstein Adler Freeman & Herz LLP also announced "an investigation of potential securities claims on behalf of shareholders of CD Projekt S.A. ... resulting from allegations that CD Projekt may have issued materially misleading information to their shareholders and investing public." Investors who "purchased the American Depositary Receipts ("ADR's") of CD Projekt SA and incurred losses" were encouraged to contact Wolf Haldenstein Adler Freeman & Herz LLP.
CD Projekt Red publicly apologized last week for Cyberpunk 2077's laundry list of glitches and noted that it should have been more transparent about the game's operation on last-generation consoles. The developers do plan to roll out updates to fix the issues, but also offered refunds to those who are currently unsatisfied with Cyberpunk 2077. Sony and Microsoft began issuing refunds for Cyberpunk 2077, while Sony also removed the game from the PlayStation Store.
Cyberpunk 2077's rocky launch has dealt a massive financial blow to CD Projekt Red, as the game reportedly cost the studio's founders $1 billion. CD Projekt Red's stocks dropped 29 percent in one week, according to Bloomberg, and continued to plummet until the shares lost one third in value. This has made the game's many bugs and glitches some of the most expensive in gaming history.
The release of Cyberpunk 2077 has resulted in multiple losses on all fronts for CD Projekt Red. Due to the extra work needed on the main game, CD Project Red will most likely put off continuing any development on Cyberpunk 2077's multiplayer. Fans will be waiting with bated breath to see if the developer can recover from this infamous launch.