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Surprisingly, 3D Realms explicitly notes that it continues to work on "the development of" Duke Nukem Forever, though "it released the majority of its employees working on the development" because of a "lack of funding to sustain the high level of development."
"[3D Realms/Apogee Ltd.] admits that it has continually worked on the development of the DNF for many years, and continues to do so," reads the specific clause.
I personally don't see how they can do much with about three guys and almost no money (wild speculation on the manpower and funding). As has been said before, we're not going to know the truth until the end of the courtroom drama.
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