The tangled lawsuit between Gearbox Software, 3D Realms, and Interceptor has been voluntarily settled by all parties, with Gearbox retaining all rights to Duke Nukem. It's still not clear when they will make another Duke game, though — or whether they even should.
The announcement came in the form of a post on Gearbox's website. It includes statements from all involved parties, including the CEO of 3D Realms, Mike Nielson:
When Interceptor acquired a license to develop ‘Duke Nukem Mass Destruction’ (‘Duke Nukem Survivor’) from 3D Realms, we did so in good faith and were not aware of any conflict. We never intended to cause any harm to Gearbox or Duke, which is why we immediately ceased development after Gearbox reached out. To secure the future of Duke, 3D Realms has agreed with Gearbox that a single home serves the IP best. And as big Duke fans, we’re excited to see what Gearbox has in store for the ‘King.’ As for our own games, we’re eager to complete development of the ‘Bombshell’ game and get it in the hands of our fans.
After years of waiting for a resolution, Gearbox stated it wanted to keep the terms of the agreement secret.