NEW YORK, March 3, 2021 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against CD Projekt S.A. ("CD Projekt" or the "Company") (OTCMKTS: OTGLF; OTGLY) and certain of its officers. The class action, filed in the United States District Court for the Central District of California, and docketed under 21-cv-00354, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise, acquired CD Projekt securities between January 16, 2020 and December 17, 2020, inclusive (the "Class Period"). Plaintiff seeks to recover compensable damages caused by Defendants' violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder by the United States Securities and Exchange Commission, against the Company and certain of its top officials.
If you are a shareholder who purchased CD Projekt securities during the Class Period, you have until February 22, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
CD Projekt, through its subsidiaries, engages in the development and digital distribution of videogames worldwide. The Company operates through two segments: CD PROJEKT RED and GOG.com. The Company's product portfolio includes The Witcher; The Witcher 2: Assassins of Kings; The Witcher 3: Wild Hunt, Hearts of Stone games, and Blood and Wine; Thronebreaker: The Witcher Tales; Gwent: The Witcher Card game; and Cyberpunk 2077, as well as online multiplayer games.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company's business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and failed to disclose to investors that: (i) Cyberpunk 2077 was virtually unplayable on the current-generation Xbox or Playstation systems due to an enormous number of bugs; (ii) as a result, Sony would remove Cyberpunk 2077 from the Playstation store, and Sony, Microsoft, and the Company would be forced to offer full refunds for the game; (iii) consequently, the Company would suffer reputational and pecuniary harm; and (iv) as a result, Defendants' statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
CD Projekt launched Cyberpunk 2077 on December 10, 2020. Consumers soon discovered that the current-generation console versions of Cyberpunk 2077 were error-laden and difficult to play. IGN published a scathing review, stating that the console versions "fail to hit even the lowest bar of technical quality one should expect even when playing on lower-end hardware. [Cyberpunk 2077] performs so poorly that it makes combat, driving, and what is otherwise a master craft of storytelling legitimately difficult to look at."
On December 14, 2020, facing criticisms for delivering an unplayable, bug-ridden product on the current-generation consoles, the Company held a conference call. During the call, Defendant Adam Michal Kicinski called the current-generation console versions "way below our expectations".
During that same call, Defendant Piotr Marcin Nielubowicz stated "we definitely did not spend enough time looking at that," when referring to issues with the current-generation console versions.
Following the release, the Company's American Depository Receipt ("ADR") (OTGLY) price fell $6.93 per share, or 25%, over three trading days to close at $20.75 per share on December 14, 2020, damaging investors. Over that same period, CD Projekt's common share (OTGLF) price fell $21.65 per share, or 20.1%, to close at $86.00 per share on December 14, 2020, damaging investors.
Then, on December 18, 2020, Sony issued a statement via the Playstation website that it would "offer a full refund for all gamers who have purchased Cyberpunk 2077 via PlayStation Store" and "be removing Cyberpunk 2077 from PlayStation Store until further notice." Microsoft also announced that it would offer refunds for the game.
That same day, the Company stated that Sony's decision to "temporarily suspend" sales of the game came after a discussion with the Company.
On this news, CD Projekt's ADR (OTGLY) price fell $3.49 per share, or 15.87%, to close at $18.50 per share on December 18, 2020, damaging investors. CD Projekt's common share (OTGLF) price fell $9.20 per share, or 10.45%, to close at $78.80 per share on December 18, 2020, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP