According to the suit, Cloud Imperium was to develop only one game with CRYENGINE (Star Citizen) and not two (Star Citizen and Squadron 42). And while some may say that Squadron 42 is just the single-player mode of Star Citizen, the game is being sold as a standalone title, thus giving the impression of a second, separate game.Cloud Imperium Games responded they've been aware of the lawsuit for quite some time. They refer to the case as meritless, and point out they haven't used CRYENGINE for quite some time since they switched to the Amazon Lumberyard game engine. Full details at DSO Gaming.
Moreover, and according to the contract, Cloud Imperium was meant to use all of Crytek’s logos everywhere. However, and after changing engines, Cloud Imperium removed them. Now we don’t know whether Crytek and Cloud Imperium settled things when the latter decided to move to the Lumberyard. If they did not and Cloud Imperium violated their contract – by simply moving to another engine – then the company is in big trouble.
As a bonus, here's a recent video from a keynote that shows off some kickass Star Citizen footage.