He was forced out (maybe?) of the company he was a key member of. He and his former company have thrown a LOT of mud at each other since then, mostly about claims of Alexis being an abusive jackass or sexual harasser, while he claims the reverse and that they're running hit pieces on him. There's been so much back and forth that it's hard to make heads or tails of any of it. And none of it turned into a legal matter so never progressed past "he said she said".
I posted this last time the trailer was posted. I am in the UK indie dev scene, and heard about this stuff before it went public ( at least some of it.)
Essentially an employee of Failbetter Olivia Wood, came out and admitted they'd been in a relationship with Kennedy that had been kept secret when hired. You can argue that this was a bad arrangement, but the trouble here is Kennedy held all the power and used this to his advantage. Kennedy then dumped Wood for another employee Lottie Bevan and lied about it to Failbetter; he was Lottie's Manager. He started becoming increasingly abusive to Wood. Threatening people in the studio who picked up on it while keeping others ( some people are fully remote) in the dark.
Other women in the industry spoke out about it including Emily Short, who at the time was a freelancer for Failbetter. Stopped working with them for a long while ( you can see why in her tweets) and then joined them more recently.
https://twitter.com/emshort/status/1166807338336051208?lang=en
As has been said none of AK's legal threats went anywhere, and with current social media disintegrating it's a hard thing to follow. Obviously, make up your own mind with this. But it's more than a he/she said situation.