Crytek state that Freyermuth did not recuse himself from the negotiations between CIG and Crytek which was a conflict of interest. This would breach the GLA according to Crytek.
The next year, Crytek say that they told CIG and RSI that they were in breach of the Game License Agreement.
One of the complaints is that Cloud Imperium Games is using Lumberyard from Amazon, based on CryEngine.
As if Star Citizen doesn't have enough troubles.
Crytek points out a comment made by Chris Roberts back in September 16, 2016, where he said, "we don't call [the video game engine] CryEngine anymore, we call it Star Engine". And in January 2016, CIG "made a further public announcement about Squadron 42, stating that it would be made available for purchase as a standalone video game". Shortly after this, the Crytek trademarks were removed from the game.
Crytek say that CIG and RSI received "a substantial reduction from Crytek's usual licensing fees in view of the promotional consideration".
As we explained in October, the Star Citizen project is actually an effort to create two unique AAA-quality games: an online multiplayer game referred to as the Persistent Universe and a single-player game called Squadron 42. This is evident in marketing material for the game, which shows lines of code belonging to none other than CryEngine 3. The agreement with Crytek was to only cover one game and therefore CIG would now be breaching the initial agreement. It also alleges that CIG failed to forward on bug fixes and optimisations to the engine that it had promised to provide. The result of the lawsuit will be interesting, especially since CIG claims that it did nothing wrong.
The final complaint in the document is that CIG and RSI revealed CryEngine technology to third parties without permission.
As such, Crytek is now seeking damages from the two developers, including direct damages that it estimates are in excess of $75,000 in addition to assorted indirect, consequential, and special damages as well. Regarding the copyright infringement claims, Crytek claims that Cloud Imperium's infringement was "willful, reckless, and/or in blatant disregard for Crytek's rights as a copyright holder".
This is not good news for CIG or Star Citizen and it could take some time to play out.