I find some points of this lawsuit to be Crytek's pipe dream, like this one:
"Defendants further breached the GLA by breaking its promise toexclusively use CryEngine in the Star Citizen video game."
There is no way in hell than any game studio would buy full AAA license of an engine and agree that their intellectual properly must be exclusive to the game engine.
Its pretty much like Crytek would be a publisher of the game, which is no way any would agree for, especially company that wanted to avoid publishers and even any investors.
This is a straight lie, as there cant be anything in a contract that suggests that.
Dude, this happens all the time. It's no different from Sony or MS providing various types of assistance (sometimes even publishing the game) in return for that game being tied exclusively to their respective systems.
CIG probably had no reason to expect (at the time they partnered with Crytek) that CryEngine would not be suitable for the end product. It was only after all the stretch goals and funding blow-up happened, that CIG started to realise that CryEngine was not suited to what they were trying to do. Rather than persevere with it, they decided to cut and run.
I would be surprised if people at CIG had not discussed the ramifications of the switch to LY, at least in terms of the exclusivity agreement with Crytek. They obviously decided that the risk of Crytek suing was one they had to take in order to get to where they wanted to be at with the game. Assuming Crytek has a case, all that remains is how much Crytek can make out of it. THAT is the reason why Crytek wanted a jury trial, not because it doesn't have a case, but because juries have a tendency to award enormous punitive damages (look at Hulk Hogan's case against Gawker).
If CIG is smart, it will settle with Crytek, but my guess is that the parties are still too far apart on the amount that would make this suit go away. Crytek has upped the ante by raising the threat of discovery laying bare much of what CIG would like hidden from public scrutiny (i.e. its finances).
What I think will happen is that CIG will supply Crytek confidentially with its financial information and the two sides will settle on terms that will not be disclosed. That way backers will not panic and CIG can halt the PR nightmare that is unfolding before its eyes.