Current lawsuit leads to state where nothing's happening (8)
I believe the answer is:
inaction
'state where nothing's happening' is the definition.
(state of inactivity)
'current lawsuit' is the wordplay.
'current' becomes 'in' (I've seen this in other clues).
'lawsuit' becomes 'action' (synonyms).
'in'+'action'='INACTION'
'leads to' is the link.
(Other definitions for inaction that I've seen before include "This is not working" , "Sloth" , "Lack of movement or endeavour" , "Failure to exert oneself" , "Failure to do anything" .)