Prytania Media Sues NetEase for $900 Million Over Alleged Defamation and Studio Shutdowns

The lawsuit claims NetEase spread false rumors of financial fraud, leading to the collapse of Prytania Media and its subsidiaries in 2024.

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.