Dennis says they never got that money.
Even if they did, I thought that went into making their shitty x-men game where you don't play as the x-men?
They don't seem like a company that has a lot of liquid cash and if they don't file bankruptcy, Epic is going to be collecting every cent from them. Then again, maybe Canada laws are different and they have some options. I honestly can't imagine that if they knew they were looking at a potential judgment against them for 4 million+ and that it would kill their company that they would have stuck to their guns and just hoped for the best in a case that never looked good for them.
Epic has more money, better lawyers, and dozens of companies in similar situations to SK who took Epic's side saying UE3.0 was fine. This really reeks of SK having no money, on their way to bankruptcy, and maybe they can squeeze some cash from Epic in a settlement to keep the studio a float.