Image: FredoAlvarez (CC BY-ND)
Linden labs has settled the Bragg lawsuit, on undisclosed terms.
This is very much to be expected. The only surprising thing here is that it didn't happen much sooner. You simply can't encourage people to invest and 'own' virtual land, run around telling them that they can make lots of money, and then act as if they have no interest in it whatsoever.
Linden almost certainly doesn't want an adverse precedent here – an opinion that they can't kick people out and confiscate their 'property' without process or compensation. It is not, however, a principle that they are going to be able to avoid for very long…