I'd agree it was a dick move if the decision had been made swiftly. I've only been able to get more than basic information from the WildFire side of things so my overall view is likely tilted. The way the WildFire staff tells it, they've been having payment problems regarding royalities from Catalyst for sometime now.
As I understand it, CthulhuTech books only recently came out as PDF downloads from DriveThruRPG because Catalyst held the rights to the material so WildFire couldn't "e-publish" or whatever the right term is.
So, WildFire felt the terms of agreement where not to their liking (I don't know if they felt they where unfair or just wanted more money, I don't personally care either way) and has filed legal action following failed negotiations. Like I said, don't know the Catalyst side of events.