Been over a month since you wrote this, and in that time it has already been demonstrated to be BS (other people already pointed out the aptness of your login name).
The judge wanted the serious claims by IB to be considered properly. That takes time.
Any way you slice it, IB brought the claim, the judge ordered a settlement negotiation with a magistrate, the case ended. IBs claims (both in the US and UK) were dismissed WITH prejudice meaning they can't be refiled.
Ultimately IB made some allegations and those have not been upheld by the court. They didn't even go to trial. Meanwhile Xenforo development has continued with a new maintenance release and 1.2 release announced, the community is thriving and new addons are being published regularly (daily?). Also more people (like us) are announcing plans to migrate to Xenforo or have already done it (e.g. Digital Point, which is not an insignificant site).
I feel your analysis of the situation is demonstrably incorrect.
I think this is even born out by the failure of your forum complaints website to load. Not quite the success you were hoping? :)

This lawsuit never made any sense to me. If you're producing quality forum software, who cares what else is on the market? vB should be focused on being the best it can be, not making sure others aren't good.

Competition is awesome. It encourages creativity and diversity. While xF might not be my cup of tea, it certainly seems to be a perfect fit for many others. So what's the problem?

It would be one thing if these guys marched out the door with vB source code and sold it at a lower price. But xF is nothing like vB, visually or functionally. I'm glad the case got dismissed.

ANYTIME a case is settled the case is dismissed WITH prejudice otherwise why would anyone settle if they could just be sued again?

Hardly conclusive as nothing can be upheld without a trial.

Moved before the settlement.

;)

FWIW I am personally happy to see XF development resume, but that does not change the facts above.

Competition is good for business. When you have a competitor pushing out a product that gets your customer base's attention, you better step up your game to keep them. Lawsuits are a waste of time and money. Resources that would be better used in making your product better for your customers and keeping your company competitive.