A New York-based law firm has filed a class action lawsuit on behalf of investors in CD Projekt SA. The lawsuit by Rosen Law Firm is for damages to those who purchased securities in CD Projekt between January 16, 2020 and December 17, 2020, based on statements made by those associated with Cyberpunk 2077’s development.
Primarily, the suit alleges that false or misleading statements were made about Cyberpunk 2077 being playable on the current-generation Xbox and PlayStation systems. The removal of Cyberpunk 2077 from the PlayStation store, and the offer of refunds by Sony, Microsoft, and CD Projekt itself are widely cited in business circles as the reason for a plunge in CD Projekt’s stock price despite its high sales numbers. In the weeks prior to Cyberpunk 2077’s release, CD Projekt’s CEO said that the game ran “surprisingly well” on the PS4 and Xbox One.
It’s important to note that this lawsuit has only been filed in US Courts. In order to proceed, the court must certify the class, indicating that this is a large group of people with similar claims who are eligible for a lawsuit. Rosen Law Firm is an international law firm that concentrates solely on class action suits against businesses on behalf of shareholders.
Per the law firm’s press release, this is their logic for the suit: “(1) Cyberpunk 2077 was virtually unplayable on the current-generation Xbox or Playstation systems due to an enormous number of bugs; (2) as a result, Sony would remove Cyberpunk 2077 from the Playstation store, and Sony, Microsoft and CD Projekt would be forced to offer full refunds for the game; (3) consequently, CD Projekt would suffer reputational and pecuniary harm; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.”
We’ll watch this suit as it develops, but it’s important to note that class action lawsuits take time, and securities suits can take even longer.