It is the suit's assertion that the Mortal Kombat franchise is "far more a creation of Threshold and Kasanoff than of Midway," with Threshold's film adaptations and TV shows allegedly signifying more creative input than that of Midway, which was "almost entirely limited to the videogames." That's right! Bet you didn't know that Mortal Kombat was a "videogame" before it became an award-winning film franchise!
Threshold backs up its claims by pointing out the "minimal back-story and mythology" provided by the games, as well as the "flat, cookie-cutter characters" it had to use as a basis for its derivative works. Indeed, anybody who's seen "Mortal Kombat: Annihilation" is sure to agree that the 78 characters in that rich, compelling film -- including the cyborg and the lizard guy -- were so much more fleshed out right until they all died or something.
Source -- Complaint (warning: PDF)