Jeff Strain is suing investor NetEase, claiming internal gossip caused his game company to shut down

Jeff and Annie Strain, the owners of publisher Prytania Media, are suing NetEase over claims of “defamation, unfair trade practices and interference with business relations,” Polygon reports. The new lawsuit runs counter to the couple’s previous claim that leaks shared with Kotaku led to them shutting down their studios Crop Circle Games and Possibility Space, before Prytania Media itself closed.

Per Polygon’s reporting, the Strains claim that NetEase “spread false and defamatory statements that caused the demise of Prytania Media,” and specifically, that the Chinese company suggested Prytania Media was engaged in financial fraud, scaring away other investors.

Prytania Media shutdown Crop Circle Games without warning in March 2024, before closing Possibility Space a month later. Possibility Space was notable for the variety of talent it had working on its first AAA title, including former Waypoint editor-in-chief Austin Walker, Watch Dogs: Legion designer Liz England and Jane Ng, the lead environment artist on Firewatch. At the time, the Strains suggested that information shared with Kotaku about an in-development title called “Project Vonnegut” led to an unnamed investor backing away from offering further funding. If the new lawsuit is to be believed, that was not the case.

The lawsuit is headed to federal court. For more color on what the Strains claim NetEase did, read Polygon’s report. However things play out, it doesn’t change the fact that a lot of people were laid off and Prytania Media did little to make things right. “Severance never materialized btw,” Walker shared in a Bluesky thread going over the details of the lawsuit.