Subnautica 2 publishers Krafton have accused three ousted leads of abandoning their duties on the game, which resulted in delays.
Former Unknown Worlds bosses are now suing Krafton following the accusations made against them.
These developments stem from the replacement of key figures in Unknown Worlds by Striking Distance CEO Steve Papoutsis, triggering a conflict.
The conflict intensified with reports suggesting that Krafton's decision to delay the game coincided with a large bonus set to be paid to Unknown Worlds staff.