Sunless Sea developer Failbetter Games has reached a "mutually agreeable settlement" with Alexis Kennedy, the company's founder and former creative director, following years of public feuding and legal threats.

There's little detail on what exactly has been agreed between the two parties - though the statement claims this settlement covers "all their disputes".

"Failbetter and Alexis Kennedy are pleased to have reached a mutually agreeable settlement of all their disputes, and by such settlement have drawn a line under their long-standing disagreements," reads a brief statement from Failbetter posted on X, formerly Twitter.

"Failbetter and Alexis Kennedy are excited to return their full attention to making games that people love."

Kennedy shared the statement, and added: "Buried the goddamn hatchet. My thanks to everyone over there who was ready to sort this out. This really is an end to it, and I wish em the best of luck."

Failbetter and Kennedy parted ways in 2016 following the successful launch of Sunless Sea, when Kennedy said he wished to work independently. A year later he founded his own micro-studio Weather Factory, which eventually launched occult library game Book of Hours.

In 2018, Kennedy contributed to a Eurogamer report into Failbetter's management and studio culture following his departure.

A year later, Kennedy was accused of exploitative behaviour by two women - former colleagues - which he denied at the time and described as "malicious misrepresentation".

The years since have seen the two parties involved in messy legal proceedings over a variety of issues, including the legal ownership of the company, as Kennedy himself has said he is the victim of "cancellation".