‘Marvel Rivals’ Developer NetEase Sued for $900 Million by ‘State of Decay’ Co-Creator
NetEase Games, the company behind Marvel Rivals, is facing a massive $900 million lawsuit from State of Decay co-creator Jeff Strain and his wife, Annie Strain. The couple, who own the game publishing company Prytania Media, claim that NetEase’s actions led to the downfall of their business.
The lawsuit accuses NetEase of defamation and unfair business practices that allegedly resulted in the collapse of Prytania Media and its subsidiaries, including Crop Circle Games—a studio in which NetEase had a 25% stake.
According to a report from Polygon, the Strains originally filed the lawsuit in January 2025. NetEase later requested for the case to be moved to federal court earlier this month. A key part of the case revolves around a letter sent by the Strains’ legal representative, Steven Griffith Jr., to NetEase CEO Ding Lei. In this letter, Griffith claims that NetEase spread false and damaging rumors that ultimately caused Prytania Media to shut down.
The Strains are seeking $900 million in damages—three times the $300 million valuation of their company. Griffith also alleges that a NetEase employee, identified as “Han,” spread false claims that Prytania Media was involved in financial fraud, further damaging its reputation.
The legal battle also touches on international business regulations. The Strains claim that NetEase failed to comply with the United States Department of the Treasury’s rules regarding foreign investments. This allegedly led to increased tensions between the two parties.
A message attributed to a NetEase representative states:
“I can share details in our next call, but the high-level message is we want to keep away from the radar of [the Committee on Foreign Investment in the United States] which can be quite tricky. Geopolitical stuff is already causing trouble to our business efforts in North America.”
The lawsuit also alleges that NetEase did not want to disclose the identities of certain board members, some of whom were reportedly affiliated with the Chinese Communist Party (CCP). The Strains argue that NetEase’s unwillingness to comply with U.S. regulations was a key factor in the issues they faced.
In response to the lawsuit, NetEase has strongly denied the accusations, the company stated:
“The Strains’ allegations are wholly without merit. 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.”
With a legal battle now unfolding in federal court, the case could have significant implications for NetEase, as well as for international partnerships in the gaming industry. If the Strains can prove their claims, NetEase could be on the hook for a massive payout. However, if NetEase successfully defends itself, the lawsuit could end up being dismissed.
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