Annie and Jeff Strain of Prytania Media have filed a lawsuit against NetEase alleging defamation, unfair trade practices, and business interference. This lawsuit claims that NetEase's actions catalyzed the closure of several subsidiaries, including Crop Circle Games and Possibility Space. The lawsuit seeks $900 million in damages for the company's destruction, with accusations of NetEase spreading false rumors of financial misconduct. Prytania's majority ownership of the affected entities and its investors' implications on the legal outcome highlight the escalating tensions in the competitive gaming industry.
"The Strains allege that NetEase spread false and defamatory statements that led to the destruction of Prytania Media and its subsidiaries, seeking $900 million in damages."
"The lawsuit claims NetEase's actions, particularly those of employee Chenglin Han, involved spreading rumors of financial fraud that ultimately led to the layoffs and bankruptcies of their studios."
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