The long and the short of it is as follows:
1) Game released with major loading issues on the 360, solved by a major file restructure. Microsoft continue to be dicks about that patch.
2) Autumn Games (the publisher and IP owner) and Konami (who are really only involved in getting Skullgirls and XBLA spot and no more) are being sued for something related to Def Jam Superstar. As I understand it, Konami is the big loser and has to pay everybody, and Autumn is in a counter-lawsuit, presumably to get their legal fees back. [Or what Ravi said]
3) As a result of 2, the funds for DLC, PC version and the 360 patch ran out, Reverge effectively folded and the people reformed in their houses under the name Lab Zero.
4) They managed to get a patch out for PS3, but due to Microsoft regulations, Microsoft being dicks and Konami's incompetence, they still haven't got the loading times fixed for 360.
5) Due to Microsoft banning any DLC that's available on PSN first from ever being sold on Xbox Live, DLC colours still aren't available.
6) After all that, they managed to raise funds for five DLC characters, and land a publishing deal with Marvellous to do a Steam port.