Lots of games look similar to lots of other games. There are thousands of games out there and only about a dozen are truly original. As a matter of fact, yes, it does. The game industry is dynamic. It is constantly growing.
Innovation comes from all corners.
Old ideas are improved upon and new ideas are added in. Without this kind of incremental development, there would be no games industry. While some might contest that issue, no one can argue that Unreal would have appeared without Quake preceding it, or Starcraft would have appeared without Dune 2000. Incremental evolution within a genre is more the rule than the exception in the games industry. As of yet, no formal court papers have been filed, and this case has not gone to trial, so it will be quite some time before we can judge the implications and possible outcome of the suit.