The neverending saga of Silicon Knights' beef with Epic Games over the Unreal Engine has reached one of its final chapters as a U.S. Court of Appeals has dismissed Silicon Knights' appeal of a $4.5 million in damages (+$4.7 in legal costs) verdict from a lower court from November 2012. It would seem that the Canadian developer that basically no longer exists (most if not all of the staff have left) needs to come up with a lot of money if they wish to survive. The likely end is that they file for bankrupcty and Epic Games will see very little of the money they're owed.
The background is that Silicon Knights sued Epic Games for underdelivering on the promises of Unreal Engine 3.0 with Epic countersuing Silicon Knights for using Unreal code in their proprierty engine (used for Too Human).