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In a joint statement issued August 25, University of California and Nature Publishing Group said they have agreed to work together "to address our mutual short- and long-term challenges, including an exploration of potential new approaches and evolving publishing models."
UCSF faculty Keith Yamamoto and Rich Schneider played a key role in bringing this issue to the attention of UC faculty in June when UC Libraries' pricing challenges with NPG were communicated through a letter to faculty.
The joint statement followed a meeting of NPG and UC on August 17. According to the joint statement, both parties "...look forward to a successful planning and experimentation process that results in mutual agreement that serves all stakeholder groups — NPG, the UC libraries, and the scholar community, thus avoiding the need for the boycott that had been discussed at an earlier stage."
You can follow the issue on UC's Reshaping Scholarly Communications website.