Delaware court reinstates Ted Gill in major Krafton ruling over Subnautica 2

A court ruling just changed the shape of the Unknown Worlds and Krafton dispute

A Delaware Court of Chancery opinion dated March 16, 2026 ruled in favour of Fortis Advisors in phase one of its case against Krafton, finding that the company’s reasons for removing Ted Gill, Charlie Cleveland, and Max McGuire were pretextual. The court ordered Gill reinstated as CEO of Unknown Worlds with full operational authority over the studio. It is a major legal setback for Krafton in the ongoing Subnautica 2 dispute.

The opinion goes further than a routine corporate disagreement. It states that internal projections showed Subnautica 2 was likely to hit the thresholds tied to the deal’s earnout structure, and says Krafton CEO Changhan Kim consulted ChatGPT as Krafton considered ways to renegotiate the earnout or take control of the studio. The court also found that Gill may proceed with the game’s early access release when he deems it appropriate, and that Krafton must restore the access needed for him to exercise that authority, including over Steam publishing.

One important detail: this ruling does not mean the full earnout fight is over. The opinion says the earnout period is being extended by the duration of Gill’s ouster, while the question of whether Krafton wrongfully impaired the earnout, and whether money damages are owed, will be decided in a second phase of the litigation. Reuters also reported that Krafton disagrees with the ruling and is evaluating its options.

We previously covered Subnautica 2’s Collector Leviathan reveal, but this new legal ruling shifts attention from the game itself to who now has the right to steer its early access path. Right now, that authority has been placed back in Ted Gill’s hands by the court.

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