Netgear Accused by Rival of China Smear to Fan Security Fear (1)

California-based TP-Link Systems Inc. says it may take a sales hit of more than $1 billion because of erroneous reports that the networking company’s technology has been “infiltrated” by Beijing.

In a lawsuit, TP-Link claims its competitor, Netgear Inc., orchestrated a smear by planting false claims with journalists and internet influencers with the goal of scaring off customers.

Closely held TP-Link, which makes wireless routers, alleges in a complaint filed Monday that Netgear’s campaign “threatens injury to well over a billion dollars in sales” and violates a 2024 settlement of a patent fight. That accord, in which TP-Link agreed ...