The lawyers are fighting about Watchmen rights, per the New York Times.
Meanwhile, Alan Moore, who wrote the comic and sold the film rights years ago, remains characteristically caustic. From IMDb:
When asked in an interview with ReelzChannel.com about original Watchmen writer Alan Moore's dismissal of his movie, [director Zack] Snyder was quoted as saying "Worst case scenario - Alan puts the movie on his DVD player on a cold Sunday in London and watches and says, 'Yeah, that doesn't suck too bad.'" When this was brought up with Moore himself in a later interview in the British Tripwire comics fanzine, the writer commented "That's the worst case scenario? I think he's underestimated what the worst case scenario would be... that's never going to happen in my DVD player in 'London' [Moore very famously lives in Northampton]. I'm never going to watch this fucking thing."
The Times has a photo of Nite Owl and Silk Spectre II busting Rorschach out of the hoosegow. SSII looks more "whorey" than in the comic. Her short skirt and "neckline plunging to the navel" have been traded for Aeon Fluxy garters and thigh-high black boots. Nite Owl is supposed to be a slightly paunchy middle aged man--here he is younger and more musclebound. I'm sure Moore will be right, as he was about the V for Vendetta movie. To make it work at all it won't be the Watchmen that was so riveting in the '80s.