Skybound Entertainment, the license holder of the IP, has announced that Overkill's the Walking Dead is now, well...dead. The company has filed a "license related complaint with the main digital distribution platform for the Starbreeze game". As a result of the legal action, new Steam purchases of the game will be ending "within a near future" and it is unlikely that console versions of the game will be released.
Whether or not this will be a permanent death for the game remains to be seen. According to the press announcement, Starbreeze and Skybound are "in discussions about the agreement and Starbreeze is trying to resolve the issue to find an amicable solution with the ambition to finish and deliver Season 2 of the game".
For its part, Skybound has this to say:
Our creators and their stories are the core of Skybound, and since 2014 we have worked hard to expand the world of ‘The Walking Dead’ into an exceptional co-op action FPS. We did our best to work with Starbreeze and resolve many issues that we saw with the game, but ultimately ‘Overkill’s The Walking Dead’ did not meet our standards nor is it the quality that we were promised.