Less than six months after filing a lawsuit against Gearbox Software over unpaid royalities, Duke Nukem original co-developer 3D Realms has dropped the case.

According to the initial filing in June, 3D Realms brought the lawsuit against Duke Nukem Forever publisher Gearbox seeking $2 million in unpaid royalties as part of a 2010 agreement with the Borderlands developer regarding handling of the Duke Nukem property.

The claim, which was made in addition to another that said Gearbox was responsible for a (presumably outstanding) $2.9 million loan, stated that Gearbox refused and failed to comply with royalty payments. Now 3D Realms has chalked up the whole lawsuit to a “misunderstanding,” with the company issuing a statement saying a review of their business practices turned up nothing.

“After reviewing evidence regarding our business affairs, and without any money exchanging hands, we have satisfactorily resolved any and all differences that we perceived against Gearbox,” 3D Realms Co-Founder and CEO Scott Miller said in the company’s legal statement.

While Miller didn’t elaborate on how 3D Realms could have misplaced the location of over $4 million on the company’s balance sheet, it appears that the two companies – and Duke – won’t have any problems in the future, whatever it may hold for the IP.

Via Gamasutra