Oh dear...

Here's my prediction (not that anyone asked for it):

1) Distributor will be in the clear - they (appear to have) acted responsibly in withdrawing the game from sale.

2) Offended games manufacturers sue the arse of the developers

3) Offended distributor demand that the developers change the graphics

4) Developers change the graphics

5) Game goes on sale

6) Distributors withhold all royalties to the developers to cover their costs in withdrawing the game from distribution/re-distribution etc

7) Nobody buys the game. The game is a laughing stock.

8) Distributor sues developers for consequential losses.

Either way guys, you're fercked. You're not gonna paid for this game. Get a good lawyer, or a new identity.

Oh, and get your coats. Yours are marked PLAGARIST.