Jeff Strain and Annie Strain, co-founder and co-creator of ArenaNet and State of Decay respectively, are suing NetEase, the creator of Marvel Rivals, for $900 million. Their lawsuit alleges NetEase deliberately devalued and ultimately caused the closure of their studio, Prytania Media Group, by spreading false rumors of fraud to investors.

Filed in Louisiana and subsequently moved to federal court, the amended complaint accuses NetEase, a Chinese entity, of intentionally destroying the Strains’ careers to avoid U.S. law compliance. The complaint details a complex narrative surrounding Prytania Media’s subsidiaries’ unexpected closures. NetEase held a 25% stake in Crop Circle Games, one of Prytania's subsidiaries, with a representative on the board. Initially, the relationship was positive. However, the Strains allege NetEase expressed concerns about U.S. foreign investment regulations, requesting a “low profile” investment to avoid CFIUS scrutiny and suggesting the opening of branches in Canada or Ireland to facilitate investment.

A significant portion of the complaint highlights NetEase’s alleged ties to the Chinese Communist Party (CCP), suggesting a motive to conceal these connections from the U.S. government. The complaint cites the U.S. government's designation of Tencent as a "Chinese military company" and reports of NetEase CEO Ding Lei allegedly using the threat of CCP retaliation against Activision Blizzard in 2023. The Strains also claim Lei expressed concern that his U.S. immigration, involving a $29 million Bel-Air mansion purchased from Elon Musk in 2020, would be jeopardized by publicized NetEase investments.

The Strains claim their persistent questioning of NetEase regarding regulatory compliance led to a deteriorating relationship. Crop Circle Games experienced financial difficulties, resulting in layoffs and furloughs in early February 2024. The complaint alleges that on February 22nd, Jeff Strain received a text message from a venture firm managing director stating Crop Circle Games was accused of fraud, a rumor the Strains traced back to NetEase. A March board meeting included an admission from NetEase's representative that he had expressed surprise at the company's rapid depletion of funds, a statement the Strains believe originated the fraud rumors.

Following these events, investors withdrew funding from Prytania, and the company failed to secure new investment. Prytania Media and its subsidiaries, once valued at $344 million, became virtually worthless. Crop Circle Games closed in late March 2024. In April, Annie Strain published a letter on the company website attributing the company's struggles to the economic downturn and funding difficulties, also mentioning an alleged, unpublished Kotaku article. This letter was later removed. Possibility Space, another Prytania subsidiary, closed a week later.

Jeff and Annie Strain and Prytania Media are suing NetEase for defamation, unfair trade practices, tortious interference, and negligence, seeking damages exceeding $900 million—triple the company's previous valuation. NetEase denies the allegations and intends to vigorously defend itself, stating confidence that the legal process will vindicate its position.