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In the legal game of ping pong that is the suit between Silicon Knights and Epic Games, the last volley was a counterclaim and a motion to dismiss from Epic. Epic's paperwork alleged that Silicon Knights' accusations were "lacking in factual or legal merit."
SK's original claim against Epic basically said that Epic willfully "sabotaged" games using Unreal Engine 3, using money it got from selling the license to fund development of Gears of War. Epic argued that sabotaging its own licensees would end up costing the company money in the long run, and therefore made no sense.
Silicon Knights scoffed at that argument, saying:
It's only going to get uglier from here, folks. Pull up a seat and grab some popcorn.
Silicon Knights Rips Up Epic Motion [Next-Gen]