Read more about Cyberpunk 2077➜ https://cyberpunk2077.mgn.tv
The release of CD Projekt Red’s Cyberpunk 2077 has been perhaps the most dramatic of the year; delays, crunch, intellectual property takedowns, ill-advised management commentary, dramatic store removals, bugs, deception, and crashes both of the hardware and stock price variety. It has been a crazy month for the formerly well-liked game company.
But it’s with respect to that final category of drama (stock prices) that CD Projekt (and developer CDPR) may need to be the most concerned, as company investors (and the class action attorneys that would seek to represent them) line up to determine whether they can bring a case that the company perpetuated a fraud on the market, either through active deception…or carefully considered omission.
What are securities? What are securities laws? How do such laws (and regulatory bodies) seek to protect investors? And why should CD Projekt perhaps be a bit concerned?
Let’s dive in.
CD Projekt and Cyberpunk are only one dramatic lawsuit away from completing their bingo card…in Virtual Legality.
#Cyberpunk2077 #CDPR #Lawsuits
***
Discussed in this episode:
“CD Projekt, CDPR, and Cyberpunk 2077: We Have a Reputation to Burn”
YouTube Playlist – Hoeg Law
https://www.youtube.com/playlist?list=PL1zDCgJzZUy8QxfJHOJGH8UsiYOqjwhq3
“Investors reportedly considering class action lawsuit against CD Projekt Red”
GamesIndustry Biz – December 21, 2020 – James Batchelor
https://www.gamesindustry.biz/articles/2020-12-21-investors-reportedly-considering-class-action-lawsuit-against-cd-projekt-red
“CD Projekt investors may sue over Cyberpunk 2077’s ‘materially misleading information'”
Eurogamer – December 21, 2020 – Vikki Blake
https://www.eurogamer.net/articles/2020-12-20-cd-projekt-investors-may-sue-over-cyberpunk-2077s-materially-misleading-information
“Fraud-on-the-market theory”
Wikipedia Entry
https://en.wikipedia.org/wiki/Fraud-on-the-market_theory
“CDPR’s Cyberpunk Damage Control Call: Corpos Searching for Answers (VL371)”
Youtube Video – December 15 – Hoeg Law
https://youtu.be/n7uzzQ7SV-0
“Cyberpunk 2077 is ready for PC but CDPR is still working on current-gen versions”
PCGamersN – October 27, 2020
https://www.pcgamesn.com/cyberpunk-2077/why-is-cyberpunk-2077-delayed-again
CDPR Cyberpunk Launch Teleconference Transcript
December 14/15, 2020
https://www.cdprojekt.com/en/wp-content/uploads-en/2020/12/call-transcript_en.pdf
“Class action / notification of a possible crime”
BankierPL Posting – December 18, 2020
https://m.bankier.pl/forum/post/42802735?fbclid=IwAR15qwLDB6K5PP6uMR6InZyg-yUhk87Iyh5MBpu1ozlyLXoxRE1zaq_3uT4
Polish Penal Code
http://www.imolin.org/doc/amlid/Poland_Penal_Code1.pdf
“Employment of manipulative and deceptive devices.”
Rule 10b-5
https://ecfr.federalregister.gov/current/title-17/chapter-II/part-240/subpart-A/subject-group-ECFR271f57d9adc8b47/section-240.10b-5
“CD PROJEKT SA CLASS ACTION ALERT: Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating a potential securities class action lawsuit against CD Projekt SA”
Yahoo Finance – December 18, 2020
https://finance.yahoo.com/news/cd-projekt-sa-class-action-043000021.html
Securities Class Action FAQS
https://bergermontague.com/practice-areas/securities-investor-protection/securities-class-action-faqs/
“GOG advises Cyberpunk 2077 players to “keep a lower amount of items” to avoid corrupting save files”
Eurogamer – December 21, 2020 – Vikki Blake
https://www.eurogamer.net/articles/2020-12-20-gog-advises-cyberpunk-2077-players-to-keep-a-lower-amount-of-items-to-avoid-corrupting-save-files
***
“Virtual Legality” is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).
CHECK OUT THE REST OF VIRTUAL LEGALITY HERE:
https://www.youtube.com/playlist?list=PL1zDCgJzZUy9YAU61GoW-00K0TJOGnPCo
DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.
***
Twitter: @hoeglaw
Web: hoeglaw.com
Blog: hoeglaw.wordpress.com
STORE: https://teespring.com/stores/hoeg-law-store
***
DESIGN WORK
Joe Ellis (Logo Design)
Chris Leroux (Motion Graphics)
For more information: contact Chris at @Chrisleroux on Twitter.
PODCAST VERSIONS ALSO AVAILABLE
Source
CD Projekt and Cyberpunk are only one dramatic lawsuit away from completing their bingo card…in Virtual Legality.
people are dumb I have a ps4 pro it runs ok sure it has bugs but it's a damn awesome game . how you goin to sue is a video game dont like it return it but dont ruin it for the ones that like it.
If cdpr is being sued for this then activision should be sued for every cod game like cold war for being a buggy shitstain of a game and every other cod that launched that way. If I remember correctly cod mw2019 was like 30 fps on console and dropping on release. I played on pc but my friends were on an xbox and damn did they hate the framerates and overall performance of the game.
Where are all the ppl suing Hello Games for No Mans Sky?
Great piece like always but you forget that CDPR also get $7 Million from Polish Government on development CP2077! So the "Case" can be worst for them if someone start to "dig" in finances and development.
It’s a shame CDPR has to be the sacrificial lamb while EA and co continue to ass rape gamers all over the world… I hope the industry changes at least from this
The stock price would be all time high before the trial ends, so it's pointles waste of time and money.
I've been waiting for this.
was desperately waiting for that vid
Thanks for your perspective! This is some scary stuff for CDPR!
Hope this company is destroyed by this. Lies!
I wonder how likely it is that law firms are doing this just to get a bit of publicity?
Love your videos. Enjoy your vacation week…Thank you!
In the UK any item sold has to be fit for purpose and any false claims of that product that do not match the advertised features is breaking consumer law.
Obviously CDPR has made the public statements and documentation that will protect themselves. Offering the refund, admitting fault, and providing the software updates will protect them from being sued. Although, I would like to see some action taking against CDPR, but this case won’t hold up
Thanks Richard. Very informative video as always.
The public perception has already been tried by the internet, and the verdict is a resounding guilty. On the bright side for CDPR, the hype machine is already cranking out the next AAA video game that will redefine everything we ever knew now and forever. Pre-Order now. Craig and the entire Bungie team are raising a toast to the news.
Why not sue microsoft and intel for fuckin with everyone's drives and CPUs this year
I dont want them to get sued so some already well off lawyer can make more money…
As Always, Love your videos. Pretty much my go to source for industry happenings now.
While everyone was complaining, i beat it on Stadia, and had a great time. Starting playthrough two. lol
I know I definitely have learned my lesson regarding buying a game day-one. I SHOULD have waited for the full review cycle before making a move, but I didn't, and I'm a complete fucking fool for not being patient. It's strange: I have a pretty decent PC and was able to run the game just fine on Ultra settings with no game-breaking bugs, and I'm actually jealous of console players, who were handed a shit sandwich, and are able to get a refund.
Effectively CD Red have screwed them selves , no one will have faith in any further products from them.
weird, when Fallout 76 come out, it didnt get sue
After watching this video, I think it could even be possible that Sony sues CDPR. They probably won't but the loss of potential sales profit, the cost and use of servers to download the game, not to mention the extra time and effort required to set up a refund programme. It's not looking good for CDPR sad to say :/
Hope so! They after all didn't deliver what was promised in marketing! I mean if I promise you a 5 course meal (in this case an RPG with diverging paths and meaningful choices, with tons of other features!) and then deliver a two day old McDonald's Burger (so a half-baked, buggy, glitchy shooter with some very light RPG-Elements tacked on as an afterthought!) then you'd also call that fraud and you wouldn't let me get away with it, so CDPR (not even counting their past successes and good deeds for players!) shouldn't get away with this either!
This game is neither an RPG, nor has it truly meaningful choices or diverging paths! Not to mention that half the other promised features aren't in the game (either never implemented in the first place or removed in order to save time – after pissing away too much time!) or implemented so badly that you have to ask if they let the intern (or the B-Team!) code this game!
I truly hope that this gets punished accordingly! They should lose a lot of the money they fraudulently acquired from players!
It's not the actual designers of the game that need to be punished it's the shareholders investors and publishers that need to be punished who forced it out for Christmas
There's not enough lube to prepare CDPRs management for what's coming.
One problem with a lawsuit is it is standard for everyone to release buggy software needing patches.
Ive been wondering this myself and can individuals be held accountable to the law instead of the corporation?
Fraud Proof :
https://www.reddit.com/r/cyberpunkgame/comments/ki3exj/why_no_one_is_talking_about_this_kici%C5%84ski_micha%C5%82/
The company will be fine and I believe the game will have more update and dlc expansion coming up as their response to the crisis as their say patience is a virtue itself.
Am I the only person that is legitimately enjoying this game?
Funny, ran fine on my pc and I'm on Linux
So the people who were actually ripped off can't do anything. Sounds right.
If this is the case, can we sue EA? Ubisoft or activision for their shitty, bugged up misleading games? It’s ridiculous that the devs are going to be affected on a potentially amazing game all because they fucked up
I wish there was no suing, cuz then cyberpunk fix would take longer
The gamers and the investors pushed to get Cyberpunk 2077 released before they were ready so to sue them is BS! What about the gamers threatening the developers? The investors demanding it be released! This is not CD Red's Fault its Gamers and Investors that caused this mess through greed and impatience!
Will CDprojektRed get sued ? Lol 😂😂 come on as long as the there are idiot like us keeps on buying these games whats the big deal
Is this guy a lawyer?
Wilful dishonesty, barefaced lying! They certainly should be…
I think that game industry will back CDPR because if it goes to court it will open Pandoras box. Gaming industry giants will be worried. They will wonder who is next? Ubisoft (another launch like Unity and they are in trouble), Bethesda, Bioware… .