In a lawsuit originally filed back in January, Marvel Rivals developer NetEase is being sued by Prytania Media and its owners Jeff and Annie Strain for defamation, unfair trade practices, tortious interference, and negligence to the tune of $900 million.
Jeff Strain is a long-time video game developer. He was the CEO of Undead Labs that created State of Decay. Before that he was an executive producer on Guild Wars and was one of the founders of ArenaNet. He also developed Diablo, StarCraft, and Warcraft III, and was the lead programmer on World of Warcraft.
His lawsuit alleges that NetEase sabotaged Prytania Media and its subsidiaries including Crop Circle Games, which NetEase owned around 25% of, and Fang & Claw Corp. in order to prevent them from obtaining new investment by spreading false rumors about them and the financials of the company. The alleged sabotage resulted in not only Prytania Media’s subsidiaries being shut down, but Prytania Media itself being forced to close.
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The defamation charge claims that NetEase and various of its executives “made and published false statement about those who manage Crop Circle Games, [a subsidiary of Prytania Media] to non-privileged third parties.” It asserts these statements were “made negligently and/or with malice” to destroy the reputation of Prytania Media as well as the Strains.
Specifically it notes that the statements “wrongfully accuse Crop Circle Games, The Strains and Prytania Media, as well as its managers and employees of fraudulent conduct, mismanagement of a business, and dishonesty. Because of Plaintiffs’ close association with the studio, these statements harmed the reputation of Prytania Media and Annie and Jeff Strain in their community, deterred others from working with them, and exposed them to contempt and ridicule.”
Regarding the unfair trade practices charge, it states, “The Defendants have made and published unsupported, false and defamatory statements against Plaintiffs regarding fraudulent conduct, mismanagement of a business, and dishonesty allegedly committed in their management of Crop Circle Games.”
“Those statements were made and published to former, current, or prospective customers of, and potential investors in, Crop Circle Games, Prytania Media, and Annie and Jeff Strain’s other gaming business interests, all to the direct damage and prejudice of all Plaintiffs,” it continues.
It goes on to note that these alleged false statements were done “to damage Plaintiffs because they threatened NetEase’s planned expansion of its game development business in the United States. Plaintiffs, who are in the business of creating and managing game studios, were in direct competition with NetEase in the market and could speak out about NetEase’s potential illegality involving its financial investments in the United States.”
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Elsewhere in the lawsuit, it implies that the Strains were targeted because they were pressuring NetEase to be complaint with the Committee on Foreign Investment in the United States (CFIUS), but NetEase did not want to comply because it “would be required to identify its government ownership and any ‘golden shares’” as well as it being “required to identify owners and board members that are Members of the CCP and their position within the CPP, as well as the existence of its CCP party organization, it members, and the control it exerts over NetEase.”
Speaking to Polygon, the Strains’ lawyer Steven Griffth shared that they are seeking $900 million in damages.
NetEase dismissed the lawsuit telling Polygon, “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.”
What do you make of the lawsuit?
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It's almost like the CCP wanted to damage Western studios. Prytania took their money and now they act surprised that an enemy is behaving as such.
So Defamation is an Unconstitutional Law, and I hope he loses.
I don't care WHAT is said, you have the 1st Amendment right to say it. The 1st Amendment is an absolute, and ANYONE who uses Unconstitutional Laws deserves to lose and get smacked in the face.
Also I believe NetEase is a Chinese company, so this won't go anywhere hopefully.
Welcome to adulthood. Sticks and Stones..........