All I can find on the Colt Pocket Nine lawsuit are a bunch of anecdotal stories from various gun forums, not an actual news report. From what I gathered, the Pocket Nine was only produce for one year (1999) when Kahr Arms sued for “patent infringement on Kahr's off-set barrel feed ramp design.”

It looks like to me that if any company enters into the slim handgun market, they'll need to have a Kahr nearby to know what not to do.