Breaking: Bethesda drops Fallout MMO lawsuit [Update: Bethesda denies report]

[Update: A Bethesda spokesperson told Joystiq, "It's an ongoing legal matter. I don't know where whoever reported that got their information, but it is ongoing and we are going to see how it plays out in court." So there you have it – Interplay and Bethesda haven't made nice just yet. Original post follows.]

Do you hear that? That is the hushed sound of pre-squee joy from millions of Fallout fans who will be thrilled to hear that Bethesda has abruptly dropped their lawsuit against Interplay, freeing up the latter company to go ahead with a Fallout MMO (also known as "Project V13"). Duck and Cover got the scoop from Interplay investor "Frymuchan," who hinted at a secret deal between the two companies:

"Bethesda dropped their appeal of the lawsuit with Interplay and a secret deal was struck (maybe they will release the terms of the deal soon, probably so). Anyways, this is awesome news for Interplay stock. The appeal by Bethesda was dropped yesterday. I'm assuming part of the deal was that Interplay drop their countersuit against Bethesda."

For fans of the franchise who have been dismayed at the lawsuit -- which has been dragging on for months at this point -- this presents great hope for the much-anticipated Fallout MMO to actually see development and release. We'll be sure to bring you the official word from either Bethesda or Interplay when it happens.

This article was originally published on Massively.