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Uh, no? Even if the game models themselves weren't ripped (I never thought they were anyway since I couldn't be bothered to look into the specifics), that doesn't change the allegations about many of the Palworld monsters having designs that are blatantly copied from Pokemon. It's not even just...

An indie developer that couldn't come up with any original ideas and decided to just steal from another franchise. Their game is essentially Pokemon with guns. And there wouldn't be anything particularly problematic about that if it weren't for the simple fact that many of their monster designs...

Good, hopefully they do sue because there are several of those Palworld monsters that are very obviously rip-offs of Pokemon designs; some of those monsters literally resemble parts of different Pokemon fused together. It's too blatant to ignore.