What’s weird about it? AFAICT, Palworld doesn’t violate Nintendo copyright in any meaningful sense, though it might violate Nintendo’s patent claims.
That said, this lawsuit seems really late, and I wonder if that’ll factor into the decision at all (i.e. if it was close, the judge/jury might take the lack of action by Nintendo as evidence of them just looking for money).
Seems even more odd because to my eyes Nintendo probably had a better (but not super-good) chance of winning on copyright for some of the models used on the Pals than anything patent related. Stuff like riding/transforming mount animals and vehicles are basic exploration gaming functions. If they failed to defend the patent on other prior games that used those mechanics, they don’t really stand a chance here.