An ex-CEO allegedly hijacked his former game studio's website and email systems, causing over $1 million in damages before listing the domain for sale for $6.6 million. The lawsuit claims the executive launched this retaliatory strike years after being fired, effectively paralyzing the company's operations and communications.
A former chief executive of That’s No Moon Entertainment is being sued in federal court for allegedly locking the studio out of its own digital infrastructure and demanding a multi-million dollar ransom for its return. Michael Mumbauer, who was fired for cause in 2022, is accused of seizing control of company-owned domains to sabotage the business. The complaint suggests that Mumbauer’s actions were born out of a deep-seated resentment regarding his termination and a desire to disrupt the studio's future.
According to the legal filing, the situation escalated dramatically on the morning of January 6, 2026. At that time, Mumbauer allegedly hijacked the studio's primary domain, which immediately disabled the internal and external email capabilities for the entire staff. This digital lockout prevented employees from communicating with anyone outside the organization, including vital business partners and potential job candidates. Beyond the technical shutdown, the lawsuit alleges that Mumbauer had previously engaged in a campaign of harassment against senior leadership.
The impact of the domain seizure was immediate and financially devastating for the developer. The lawsuit claims that the sudden loss of access forced the studio to halt its primary creative work so that staff could focus entirely on managing the crisis and triaging the technical outage. By cutting off the studio’s ability to interact with investors and partners, the executive allegedly caused the company to suffer losses exceeding $1 million.
The legal complaint further details that after seizing the domain, the defendant listed it for sale with an asking price of $6,666,666. This public listing served as a final act of defiance that left the studio unable to maintain its professional web presence while its digital assets were held hostage. The studio characterizes these actions as a deliberate attempt to cripple the organization's reputation and operational capacity.
The legal battle, which was first reported by the news site Aftermath, is currently proceeding in Los Angeles. The studio is seeking damages for the significant financial harm and operational delays caused by the alleged sabotage. As the case moves forward, it highlights the severe vulnerabilities companies face when former executives maintain lingering control over essential digital credentials and infrastructure.
Source: Disgruntled Ex CEO Allegedly Hijacked Domain Causing One Million In Damage