CD Project Red (CDPR) is in hot water. The company has been working on Cyberpunk 2077 for the past eight years, only to get rid of the game loaded with bugs, performance issues on all platforms and graphics that were sadly inadequate on previous generation consoles. In addition to drawing the unrest of players who have had to endure the shortcomings of the game at the time of release, CDPR is also struggling with flakes from investors (not to mention an influx of refunds).
CDPR is now facing several class actions, one of which is being filed on behalf of investor Andrew Trampe by Rosen Advokatfirma. [PDF]. It is alleged that CDPR executives deliberately neglected to inform investors about how bug-riddled the game was, and that the company downplayed other issues surrounding the game before its release.
The lawsuit alleges that public statements about the game before its release “were significantly false and / or misleading because they misrepresented [facts]”
These allegations are then supported by these comments made by the CDPR executive, admitting the shortcomings, which we covered earlier this month:
After three delays, we as the board were focused on releasing the game. We underestimated the scale and complexity of the problems, we ignored the signals of the need for extra time to refine the game on the latest generation consoles. It was the wrong approach and against our business philosophy. On top of that, during the campaign, we showed the game mostly on PCs.
A separate lawsuit from Schall Advokatfirma also seeks class action status “for violating §§10 (b) and 20 (a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated therefrom by the US Securities and Exchange Commission.” This lawsuit contains much of the same evidence that was presented by Rosen Advokatfirma, referring to the many flaws and almost unplayable condition of the game for previous generation consoles.
“Based on these facts, the company’s public statements were false and significantly misleading throughout the class. When the market learned the truth about CD Projekt, investors were harmed,” the complaint states.
Following its initial release, CDPR addressed a large number of bugs and performance issues across all platforms with the v1.05 hotfix for Cyberpunk 2077. A separate, minor v1.06 hotfix was released this week to fix the annoying data storage problem on PC platforms. . CDPR has major updates planned for January and February to address outstanding issues on console platforms.