This means the game will probably get sold on Steam as well as other official stores. They were previously unable to due to the lawsuit.
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But Palworld is being investigated.
The announcement they made seemed more like a statement of awareness than any foreboding of litigation. They already filed a takedown more specifically for the mod that changes to Pokemon models.
And knowing how hawkish their lawyers are, they’ve probably had their eyes on Palworld since it was announced anyway. If there was anything actionable, they would have jumped on it already.