Sea Settled $40M With Investors After Free Fire Regulatory Fallout – Here’s How to Get Your Payout

Court: Supreme

Case: 151344/2022

Sea Limited has agreed to a $40M settlement with investors who say the company misled them about regulatory risks with Free Fire in India. The deal, reached in March 2025 and with a claiming deadline on August 4, 2025, follows a steep stock drop and years of legal back-and-forth.

What Really Happened With Free Fire in India

In late 2021, Sea raised over $6 billion through a dual offering, spotlighting major growth in its e-commerce and gaming arms—especially Free Fire, a top-grossing mobile game with massive traction in India. But, regulators in India had already begun reviewing apps with links to Chinese companies, including Sea’s game.

Then in February 2022, Free Fire was officially banned by Indian authorities on national security grounds. SE plummeted 18%, wiping out over $16 billion in shareholder value.

Investors Called Out the Silence—and Demanded Answers

When this news came out, investors filed lawsuits in February and June 2022, claiming that the company hid key information at the time of its massive fundraising push. And, in May 2024, a U.S. court reinstated key claims, giving the legal fight new momentum.

The Deal That Finally Closed the Chapter

After a round of mediation in late 2024, Sea agreed to a $40M settlement to resolve the claims, and the court already set the deadline for August 4, 2025. So, investors who bought in during the offering period and suffered losses can already check the details and file a claim.