Rosen Law Firm files securities class action lawsuit against CD Projekt S.A

Rosen Law Firm files securities class action lawsuit against CD Projekt S.A.

As we already anticipated, the problem with CD Projekt S.A was not the thousands of criticisms around the final quality of Cyberpunk 2077, but that the Polish studio would have to face several class-action lawsuits, and the first one has already arrived.

The lawsuit against CD Projekt SA

Rosen Law, an international business law firm, is the first of four law firms that will sue CD Projekt RED (CDPR). The lawsuit, claims that the Polish firm misled investors about the quality of the game on older generation consoles, which has had a recent negative impact, at the expense of the investing public.

Rosen Law Firm files securities class action lawsuit against CD Projekt S.A.
Rosen Law Firm files securities class action lawsuit against CD Projekt S.A.

The summary demand states that:

  1. CDPR has launched the game even though it is not playable for most players.
  2. Negative impact after Sony removed it from their store/refunds on all platforms.
  3. CDPR admits that it did not show the images of the game for the previous generation because they had not yet finished the game.

The complete demand picks up that:

Defendants throughout the period of its pre-launch made false and/or misleading statements and/or failed to disclose: (1) Cyberpunk 2077 was virtually impossible to play on previous-generation Xbox or Playstation systems due to a huge number of errors; (2) as a result, Sony would remove Cyberpunk 2077 from the Playstation Store, and Sony, Microsoft and CD Projekt RED would be forced to offer full refunds on the game; (3) as a result, CD Projekt would suffer reputational and financial damages; and (4) as a result, the defendants’ statements about their business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details came into the marketplace, investors suffered the consequences.

It will be a matter of waiting to see what happens, but for four law firms to sue CD Projekt RED is not encouraging.