The lawsuit, filed in December, alleged breach of contract, fraudulent transfer, intentional interference with contract and fraud in relation to Perpetual's actions in placing an "indefinite hold" on the Gods & Heroes MMOG. In October, Perpetual announced the game was on hold and effectively canceled, but Kohnke claimed it had gone unpaid and was not made aware of the situation at Perpetual until it received a notice of assignment for the benefit of creditors. The suit sought $80,675 to $290,675, as well as punitive damages.
Perpetual responded to the suit yesterday, Kotaku reported, calling it "vague, uncertain, ambiguous and unintelligible" and asking the judge to dismiss the suit and assign legal costs to Kohnke. Following that, an agreement was reached by both sides which led to the dismissal of the suit.
"The latest development is that the parties have resolved their dispute," according to a source quoted by Shacknews. "The dismissal of the case was filed with the Court this afternoon." A Kohnke representative confirmed the report, saying, "The parties have reached an agreement, but we can't detail any further than that. Part of the agreement was that we would not detail."
The dismissal is a small piece of good news for a company that desperately needs it. In the wake of the Gods & Heroes cancellation and ongoing financial difficulties, Perpetual's remaining big project, Star Trek Online, was transferred to a new developer.