According to Rolling Stone, Deee-lite's Lady Miss Kier (Kierin Kirby) has filed a lawsuit against Sega due to similarities between the Space Channel 5 character Ulala and the singer. The lawsuit alleges that many of Ulala's characteristics (ranging from her makeup and knee-high boots to her miniskirts and "cute" backpacks) are similar to those of Lady Miss Kier, resulting in misappropriation of likeness, unfair competition, unjust enrichment, and more. The lawsuit also states that audiences will most likely be confused, if they haven't been so already, as a result of the similarities between the two.
We'll have more as it becomes available.