PrinceOfFacade
Ghost-Type Master
You can file a lawsuit for, well, a lot. Whether or not you win that lawsuit is a different story. There are plenty of designs that are very clearly Pokemon-inspired, but Pokemon doesn't own the rights to anything that looks vaguely like a cartoon sheep or a mammal with a leaf on its head. There's just enough plausible deniability that I don't think TPC would win a lawsuit in the end.
That being said, TPC doesn't need to win in the end. They've got an army of lawyers at their disposal and can sustain a legal fight a lot longer than some little indie dev can, even with the money Palworld has made off of its launch success. It's in the Palworld developer's best interests to avoid a lawsuit, even if they'd ultimately win as it would probably be a Pyrrhic victory. Winning a lawsuit barely matters if the process bankrupts you.
Let's not even play the 'vague game.' We can easily tell what pokemon these creatures are based on.
It's honestly like they didn't even try to hide it, and I don't understand. It's almost like they wanted the controversy of being a Pokémon ripoff. I mean, I get that it's an easy sell, but damn. It's so lazy and cheap.