Cloud Imperium Games have been tied up in a legal battle with Crytek over Star Citizen since late 2017, with Crytek alleging that Cloud Imperium breached a license agreement and also committed infringement of Crytek's copyrights.
It seems now though that Crytek are putting their suit on hold and potentially even dismissing the case , due to Squadron 42, the standalone singleplayer spin-off game, not being released before the trial gets underway.
The case hinges in Squadron 42 being released, which was originally slated for the first half of 2020, although this no longer appears to be the case.
The company do however intend to refile the lawsuit once Squadron 42 is released. There is a lot of confusion surrounding the situation currently. Cloud Imperium have previously stated that Squadron 42 would be released as a standalone game, whichis what Crytek have taken issue with, but then have flipped back and forth on that matter a few times, stating that it was "undecided".
In a statement, Crytek stated;
This case has been marked by a pattern of CIG saying one thing in its public statements and another in this litigation. For example, at the outset of this case, CIG had publicly claimed it had switched to using the Lumberyard Engine for both Star Citizen and Squadron 42, but was forced to confirm during this litigation that no such switch had taken place
The future of Squadron 42 is in doubt, having been pushed back several times and being marred by these legal woes. The beta for the game has also been pushed back, originally slated for August last year to "Late 2020".