Full Breakdown
Dispute Over Domain Name Causes $1 Million in Alleged Losses for That’s No Moon Entertainment
1/28/2026, 9:36:38 PM
Core Event: Domain Hijacking Allegations
A federal lawsuit filed in Los Angeles accuses Michael Mumbauer, the former CEO of That’s No Moon Entertainment, of hijacking the company’s domain name, resulting in over $1 million in damages. The lawsuit claims that Mumbauer seized control of the domain, ThatsNoMoon.com, after being terminated for cause in February 2022, and attempted to sell it for $6,666,666. This action allegedly paralyzed the studio's operations, disrupting communications with investors and partners.
Background & Context: Company Formation and Leadership Changes
That’s No Moon Entertainment was co-founded in September 2020 by Michael Mumbauer, Tina Kowalewski, Taylor Kurosaki, and Nick Kononelos, with the aim of creating narrative-driven video games. The founders collectively purchased 13 internet domains related to the studio's name, including the primary domain, which Mumbauer registered in his own name despite being reimbursed by the company. The lawsuit claims that Mumbauer's actions after his termination were motivated by resentment over his firing, which stemmed from a misalignment of vision with the company's founders.
Allegations of Misconduct and Sabotage
The lawsuit details a series of alleged misconduct by Mumbauer, including a harassment campaign against a senior executive and their family. It states that on January 6, 2026, Mumbauer disabled access to the domain, which led to significant operational disruptions. Employees were unable to communicate with external contacts, causing confusion among business partners and potential hires. The complaint also alleges that Mumbauer leaked confidential information to competitors while serving as CEO.
Financial Impact and Legal Claims
The fallout from the domain hijacking reportedly cost That’s No Moon Entertainment more than $1 million in January 2026 alone. The company’s IT team faced extensive challenges in migrating services to a new web address and addressing technical failures caused by the hijacking. The lawsuit claims that Mumbauer's actions constitute trademark infringement, cybersquatting, and computer fraud, particularly after the company secured federal trademark registrations for “That’s No Moon” and related marks.
Criticism & Opposition: Mumbauer's Perspective
As of now, there has been no public comment from Michael Mumbauer regarding the allegations. The lawsuit's claims suggest a significant breach of trust and duty, but without Mumbauer's response, the full context of his actions remains unclear.
Verbatim Quotes
- “At 6 a.m. on January 6, 2026, Defendant hijacked ThatsNoMoon.com, disabling TNM’s own access to that domain and TNM employees’ ability to e-mail with any external sender or recipient,” — Lawsuit filed by That’s No Moon Entertainment
- “The lawsuit claims the fallout from the domain seizure cost the studio more than $1 million in January alone, as its four-person IT team scrambled for days to migrate services to a new web address and repair cascading technical failures.” — Lawsuit filed by That’s No Moon Entertainment
- “[a] number that [Mumbauer] may well have selected for its Satanic connotation.” — Lawsuit filed by That’s No Moon Entertainment
What's Next: Legal Proceedings Ahead
The lawsuit is currently pending in federal court, and further developments are expected as both parties prepare for legal proceedings. The outcome may have significant implications for That’s No Moon Entertainment's operations and Mumbauer's professional future.
