Overview

• Prytania Media, founded by Jeff and Annie Strain, is suing NetEase for defamation, unfair trade practices, and interference with business relations.
• The lawsuit claims NetEase spread rumors of financial fraud and misuse of funds at Crop Circle Games, a Prytania subsidiary, causing investors to withdraw support.
• NetEase denies the allegations, stating they are baseless and intends to defend itself vigorously in federal court.
• The Strains allege NetEase resisted compliance with U.S. regulations, including disclosing ties to the Chinese Communist Party, which they say contributed to tensions.
• The collapse of Prytania Media in 2024 led to the closure of multiple studios and layoffs, with the Strains now seeking $900 million in damages.