Bethesda and Interplay have reached a settlement in the ongoing Fallout Online lawsuit.

This news comes courtesy of Fallout fansite Duck and Cover which cites court officials claiming both firms recently settled, with a formal announcement expected this month.

The initial lawsuit was instigated by Fallout 3 publisher Bethesda in 2009, stating Interplay had infringed on copyright in the early development of Fallout Online. This was followed by numerous injunctions placed against Interplay claiming financial hardship.

The Fallout 3 publisher was, however, denied a preliminary injunction both in 2009 and 2011, allowing Interplay to continue work on the project.

Interplay itself stated Bethesda was simply attempting to drag out the court case to exploit the low financial situation of the Fallout Online makers, Gamasutra reports.

Fallout Online was initially meant to release in 2012.