Overview

• Prytania Media founders Jeff and Annie Strain allege that NetEase spread defamatory rumors accusing the company of financial fraud, causing investors to withdraw support.
• The lawsuit seeks $900 million in damages, triple Prytania Media's prior valuation of $300 million, and accuses NetEase of unfair trade practices and business interference.
• NetEase, which owned a 25% stake in Prytania's subsidiary Crop Circle Games, is claimed to have resisted compliance with U.S. foreign investment regulations, allegedly fueling tensions with the Strains.
• The Strains argue that the rumors, allegedly confirmed by a managing director at Transcend Fund to have originated from NetEase, led to the closure of multiple studios, including Crop Circle Games and Possibility Space, in 2024.
• NetEase denies the allegations, calling them baseless, and has moved the case to federal court, asserting confidence in the legal process to clear its name.