I don't buy it. If it was a in-game demo I don't understand the removal of small touches like the bloody hand, the crack in the tube from the body, the falling down and jumping over the crates animations. That level is insanely small compared to what other games like the Batman series were pulling off with the Unreal engine to not have the HD textures as well.
Typically not one to put any thought into a lawsuit or anything, but I hope someone has some money to blow and attempts to sue the shit out of Sega and Gearbox.
Using a steering wheel on a Burnout game is like using the Space Shuttle controls to fly a kite.