As per a note on Mane6's website, the team behind Fighting is Magic- the in-development, non-profit fighting game based on Friendship is Magic- has received a cease and desist letter from Hasbro's lawyers.
According to the site's blog post, various legal measures have been considered and enacted, but for now the team must comply with the order. As such, production has been shut down indefinitely. A staff member of Mane6 has also resigned from the project, effective immediately.
You can find the blog post here.
EDIT: For those interested, Lauren Faust has something to say on the issue.