NetEase Games faces $900 million lawsuit over defamation and business interference

A lawsuit has been filed against NetEase Games, the developers of Marvel Rivals, for apparent defamation, unfair trade practices, and interference with business relations. The company is being sued for $900 million by the owners of Prytania Media, Annie and Jeff Strain.

Prytania Media was a New Orleans-based video game imprint that served as an umbrella over multiple development studios, like Crop Circle Games, Possibility Space, Fang & Claw, and Dawon Entertainment. The lawsuit claims that the actions of NetEase Games have directly resulted in the complete shutdown of Pyrtania Media and all its subsidiary studios in 2024.

Why is Marvel Rivals' developer being sued?

The lawsuit filed by Prytania Media in January, Louisiana claims that NetEase Games, which owned a 25% stake in the subsidiary company Crop Circle Games, had spread false and defamatory statements that caused the demise of Prytania Media. The introductory statement of the lawsuit states,

“This case is about the destruction of the careers of two gaming industry veterans and their company (Prytania Media) by a Chinese entity (NetEase Games) seeking to avoid compliance with United States law.”

The owners of Prytania Media, Jeff and Annie Strain, seek $900 million in damages. The damage dealt due to NetEase Games’ apparent actions had resulted in the withdrawal of support from several investors and thus cutting off their funding. The lawsuit states,

“Shortly after NetEase spread the above referenced rumors, all of the potential investors into Crop Circle Games pulled out of the ongoing discussions regarding possibly investing in the Company.”

Initially, Prytania Media had filed a lawsuit of $300 million against NetEase Games. But seeing the success of Marvel Rivals and the damage they faced, they later increased it to $900 million.

NetEase Games addresses the lawsuit

In an official statement to Polygon, the developers of Marvel Rivals, NetEase Games, addressed the lawsuit stating that the allegations made by Prytania Media are without merit. They deny the false accusations and therefore, will continue to defend themselves and fight the case in the hopes of bringing out the real reasons for the lawsuit attack. Here’s what NetEase Games said,

“The allegations by Prytania Media and its founders Annie and Jeff Strain are wholly without merit, and we emphatically deny and will vigorously defend ourselves against them. Our record as a global gaming company speaks for itself, and we remain committed to conducting business with integrity. We are confident that the legal process will vindicate our position and shed light on the real reasons behind the demise of the Strains’ studios.”


NetEase Games had earlier laid off their entire Seattle-based development team. Marvel Rivals is a massive success and the company has earned over $135 million in just the first month of release. With a world-wide following and the company’s years of good reputation on the line, NetEase Games is sure to fight the lawsuit with everything they've got. The proceedings of the lawsuit are expected to take a long time, so only time will shed light on what happened between NetEase Games and Prytania Media.

Future of Marvel Rivals

While NetEase Games deals with legal aspects with this lawsuit, game director of Marvel Rivals, Guangyun Chen has confirmed that the production of Marvel Rivals remains unhindered. He stated that Marvel Rivals Season 2 is “ready and set to go” and “the designs for Seasons 3 and 4 have also been completed…” Players can expect a ton of content in the coming seasons including new heroes and game modes.


Also read: Game Director unveils Marvel Rivals Season 2 content and future updates


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