The initial deal was between Timegate and Gamecock but the latter became insolvent and was bought by SouthPeak. An arbiter ruled against Timegate, but then a Judge squashed it.
Basically Timegate argued they were within their rights to terminate the contract between themselves and SouthPeak because it was originally offered by Gamecock.
SouthPeak took Timegate to a US court in Texas where an arbiter eventually ruled that Timegate had 'wrongfully terminated the contract and therefore were in breach of contract itself'. They also said the developer had 'fraudulently induced Southpeak into the contract in the first place'. SouthPeak should be awarded $7.3m in damages.
Timegate naturally weren't pleased with the decision and so appealed the arbiter's ruling. A US district Judge looked at the case and ordered the arbitrator's decision be 'vacated', which is a term for 'made invalid'. This means that Timegate Studios owes no damages to SouthPeak Interactive and that the Section 8 IP rights remain with the developer.
It may not be the end of the turmoil though as SouthPeak might launch their own appeal. For the full details catalogued in the case check outon the legal tussle.