It appears as though 3D Realms and publishing duo Take-Two/2K Games have both decided to drop the on-going lawsuit involving the embattled independent developer’s long-in-development first-person shooter, Duke Nukem Forever.

In May 2009, Take-Two filed a lawsuit against 3D Realms (which still deals under the name of Apogee) for breach of contract after the developer let all of its staff go, leading Take-Two to believe that development on Duke Nukem Forever had been halted – a game that Take-Two had signed on to publish and distribute, and had allegedly already provided millions of dollars in funding.

In response, 3D Realms filed a counter-suit against Take-Two/2K Games for (amongst other things) failing to begin development on a separate game, Duke Begins, which was stipulated in the publishing contract signed with Take-Two.

This captivating ‘court-side action’ was recently dismissed “with prejudice,” which means that neither 3D Realms nor Take-Two will be able to file another suit involving the same claims.

This settlement now frees 3D Realms’ remaining members, Scott Miller and George Broussard, to talk a little more about Duke Nuke Forever and its future, while allowing them to unreservedly pursue further development partners to perhaps continue and/or finish development on the game.

El33tonline named Duke Nukem Forever as one of the game’s we would love to see at E3 2010… but we know won’t be at the show. This new development takes us a little closer to seeing the game at an E3 sometime in the future.

Go see the other games we wish would show up at E3 this year over here.

Source: Gamasutra