At the Star Trek Beyond fan event JJ Abrahms announced that because of Justin Lin, Paramount was dropping the lawsuit against Axanar. — Axanar Productions (@StarTrekAxanar) May 21, 2016

According to Abrams, the movie's director Justin Lin heard about the lawsuit, was personally troubled as a fan and pushed for a resolution. As you can see in the Periscope stream embedded below from Trek.fm, he said that in the next few weeks it will be announced that the lawsuit is going away. Now, in a statement to Buzzfeed reporter Adam Vary, CBS/Paramount lawyers have said that they are in settlement talks and plan to set up guidelines for future fan films. All in all, it's probably a good call to stop antagonizing the fanbase before releasing a new movie, so it's not too surprising that all of this news came at once.