The lawsuit filed in June by 3D Realms against Gearbox Software over unpaid Duke Nukem Forever royalties has been dropped, reports Kotaku. There seems to be a small dispute over how this happened, as they have an email from 3D Realms to Gearbox saying they have "voluntarily withdrawn" their claims against Gearbox, but Kotaku states Gearbox president Randy Pitchford, who forwarded them the letter, says the suit was "dismissed with prejudice," which would mean the court decided the matter. Here's the letter from 3D Realms co-founder Scott Miller:

After reviewing evidence regarding our business affairs, and without any money exchanging hands, we have satisfactorily resolved any and all differences that we perceived against Gearbox.

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 Now that we better understand—and appreciate—the actual nature of our business matters, we have voluntarily withdrawn our claims against Gearbox, with genuine apologies to Randy for any damage that our lawsuit may have caused to the relationship.