Update: Seb sez, "Cisco, Michael Lynn and ISS have all come to an 'arrangement'. It would seem all material pertaining to the flaw, the exploit and the talk are to be handed over to Cisco, who will presumably lock it all up and throw away the key. All videos of the presentation are to be handed over as well, and Lynn has been forbidden from talking at Black Hat or Defcon."
Michael Lynn, a former ISS researcher, and the Black Hat organisers agreed to a permanent injunction barring them from further discussing the presentation Lynn gave on Wednesday. The presentation showed how attackers could take over Cisco routers, a problem that Lynn said could bring the Internet to its knees.
The injunction also requires Lynn to return any materials and disassembled code related to Cisco, according to a copy of the injunction, which was filed in US District Court for the District of Northern California. The injunction was agreed on by attorneys for Lynn, Black Hat, ISS and Cisco.
Lynn is also forbidden to make any further presentations at the Black Hat event, which ended on Thursday, or the following Defcon event. Additionally, Lynn and Black Hat have agreed never to disseminate a video made of Lynn's presentation and to deliver to Cisco any video recording made of Lynn."
Update 2: Randi, a reader who claims to be an ex-coworker of Lynn's, and the girlfriend of Lynn's roommate, says, "A settlement with Cisco has been reached, but ISS is still pursuing criminal charges. The press doesn’t appear to know yet that the FBI is performing an investigation now, starting with seizing equipment from Michael and his roommates. On a happy note, Mike has received quite a few job offers, including from some places you wouldn't expect."
Update 3 Courtesy of James, Wired News's coverage of the FBI's investigation of Michael Lynn