A summary of Southern California-related business litigation developments during the week of Dec. 4.

Atari Sues Nintendo Over Hand-Held Computer Game: Pepsico Inc. reached a partial settlement Friday in U.S. District Court in Los Angeles of a federal suit demanding that it withdraw a Nintendo video game ad that inaccurately claims that the game features a color screen. Pepsico came to the agreement with Nintendo’s archrival, Atari Corp., which filed the suit Thursday in federal court against both Pepsico and Nintendo of America Inc., alleging that they engaged in a joint advertising campaign that “irreparably injured” Atari’s sales of a video game called “Lynx.” Under terms of the partial settlement, Pepsico accepted responsibility for an ad in today’s People magazine. The company also agreed to run no future ads claiming that Nintendo’s “Game Boy” comes with a colorized screen, except for a full-page layout already set to appear in next week’s issue of People. Atari is seeking unspecified damages in its suit. No trial date has been set. The suit is part of a legal dispute waged by the companies in the past year. Atari Games sued Nintendo last December charging monopolistic practices. In January, Nintendo sued Atari alleging violations of trademark law. (Filed Dec. 7, 1989, Case No. CV89 7071)