The ongoing legal battle between Bethesda and Interplay regarding the Fallout MMO is rumored to have reached a critical turning point. According to Fallout fan site Duck and Cover, the two companies have reached a settlement. Specifics of the settlement are reportedly set to be revealed later this month.

Joystiq is unable to confirm whether or not the settlement has actually taken place, though the rumor appears to be in line with what we've heard from our own sources.

In October, Bethesda tried -- and failed -- to impose a preliminary injunction on Interplay, which allowed the latter to continue work on the beleaguered project. Will the Fallout MMO manage to make its proposed late 2012 launch window? We should have an answer soon enough.