Krafton says it has reached a settlement with the lead developers at Unknown Worlds Entertainment to end their legal dispute over earn-out bonuses related to Subnautica 2. In a regulatory filing, the publisher says both sides withdraw all pending lawsuits as of Tuesday and drop their court fight. The dispute follows Krafton’s acquisition of Unknown Worlds in October 2021, a deal intended to broaden Krafton’s portfolio beyond its PUBG franchise and build on Unknown Worlds’ intellectual property and community-driven game experience, including the Subnautica series.

In the period leading up to the litigation, Krafton removed Unknown Worlds co-founders and CEO Ted Gill from their positions, citing a lack of leadership and delays in Subnautica 2 development. The ousted leadership later filed a lawsuit against Krafton in Delaware, escalating into a year-long legal battle. Multiple outlets report that as part of the settlement, Krafton agrees to pay bonuses to Subnautica 2 developers, including all staff members, following the end of the court proceedings.