Pocketpair goes on to say that Palworld has been claimed to infringe on three patents held by Nintendo and The Pokemon Company and that part of the damage is required as compensation.
The first patent is one that most had guessed to be part of the case, as 7545191 refers to the process of capturing and befriending Pokemon, which Palworld apes with its Pal Spheres. The other two patents that are included in the lawsuit, 7493117 and 7528390 haven’t been found and detailed just yet, but they’re likely also mechanics in Pokemon games that are replicated in Palworld.
I also think location has to do with it. The dev team behind Coromon are in Europe while both Nintendo and the Palworld devs are in Japan.
From what I understand from a previous article, japanese patent laws can be quite strict.