Substantive AI Litigation · November 2026
Fortis Advisors, LLC v. Krafton, Inc.
Chancery Court reinstates a CEO after the buyer’s chief executive used ChatGPT to plot a “takeover” to avoid an earnout.
354 A.3d 906 (Del. Ch. 2026)
When Krafton Inc. acquired Unknown Worlds Entertainment, a video game studio, in 2021, Krafton contractually guaranteed that certain of Unknown World’s founders, including the CEO, would retain operational control of the studio and could be fired only for cause.
Later, as the studio was preparing to release a highly anticipated sequel to a popular game, Krafton’s CEO, fearing he had agreed to a “pushover” contract, “consulted an artificial intelligence chatbot to contrive a corporate ‘takeover’ strategy.” ChatGPT produced a “Response Strategy to a ‘No-Deal’ Scenario,” and “Krafton followed most of ChatGPT’s recommendations.” The Krafton CEO admitted at trial that he had deleted relevant ChatGPT logs.
The court found Krafton’s “newly manufactured justifications” for the terminations “pretextual” and reinstated Unknown Worlds’ CEO.