Screenrant Article here from a day ago. It does still state that Nintendo intends to investigate, but most of the stolen/copied asset claims have been refuted or rescinded. With the main “they stole assets” person admitting they fabricated the proof because they hate how Palworld glorifies animal abuse (which is extremely ironic to me because no one had a problem when Pokémon was cockfighting for children)
If you go to the account that this account uses for proof, you’ll see that the user (byofrog) admitted that they fudged the specs to make them look identical. This is not a one to one comparison