When Microsoft acquired FASA Interactive earlier this year, FASA's Shadowrun was rumored to be on the development roster chopping block. A representative for the company confirmed Tuesday that the game is "not currently under development" (public relations speak for "dead") and the team is now working on other unannounced projects.
Rumors back in January are that the game was similar to a game in development at Digital Anvil (and Microsoft is publishing Digital Anvil's games).