Not sure if anyone checking here is still interested in the ongoing legal battle, but just in case, here's the latest: Fred and Paul have now setup a gofundme page to help with their legal defense. I am not going to link directly to it, but in the description they talk about their view that this is all "a predatory legal attack ... -- an established, corporate publisher attempting to bully two lone developers into surrendering their most treasured game, characters and unique universe."
The only other thing of note to come out of this is that Paul and Fred are saying they think their legal fees will cost them $2 million.
I'm curious to see if this spurs another crazy rant from the Stardock guy, but sadly I don't have the time to look for his posts atm.
Below are videos that provide a detailed look at the legal dispute for anyone interested to catch up on what's been going on without doing a lot of reading.