The embattled developer sued Gearbox earlier this year over what it alleged was more than $2 million in royalties and fees for work done on "Duke Nukem Forever." The title was in development for nearly a decade without ever seeing the light of day. The "Borderlands" developer eventually finished "Duke Nukem Forever," releasing it in 2011 to scathing reviews and general commercial apathy. Feeling slighted, 3D Realms founder Scott Miller took Gearbox to a Texas court, but has since dropped the case.
"After reviewing evidence regarding our business affairs, and without money exchanging hands, we have satisfactorily resolved any and all differences that were perceived against Gearbox," Miller wrote in a letter to Kotaku. "In all sincerity, we regret the misunderstanding that instigated our lawsuit. Now that we better understand -- and appreciate -- the actual nature of our business matters, we have voluntarily withdrawn our claims against Gearbox, with genuine apologies to Randy [Pitchford, president of Gearbox] for any damage that our lawsuit may have caused to the relationship.”
Gearbox now wholly owns the rights to the "Duke Nukem" IP, though it is unknown whether the developer plans to do anything with it any time soon.
This isn't the first time Gearbox has come under legal fire. "Aliens Colonial Marines" publisher Sega was looking into possible legal action following the compromised state of the shooter earlier this year when it was released. Sega asserted Gearbox took money it was given by the Japanese publisher for work on "Aliens" and instead used it to continue to fund "Borderlands 2."