ShackNews is reporting that Silicon Knights has served Epic Games (makers of the Unreal Engine) with a lawsuit.
The thrust of the complaint seems centered around E3 2006, where Too Human was demonstrated and subsequently criticized for, as the lawsuit describes, "technical problems and generally unpolished appearance." Silicon claims that Epic withheld a "very useable version" of the Xbox 360 engine for its own purposes, only delivering a fully functional version of the software in November of that year--roughly eight months past the original March 2006 deadline.