McGrath didn't go much into detail, but basically around 2011 Murphy Karges and Stan Frazier left the band. Then in 2013 McGrath says he's got ideas for an EP. Then in 2014 McGrath said he and Sheppard wanted to make new music but were stuck in legal issues with Karges and Frazier and said he didn't believe they would ever be able to release new music as "Sugar Ray" anymore. I suppose because the legal stuff just wouldn't end and maybe he was feeling cynical or something.
So far, other than what McGrath has already said, nobody has said anything, or at least I haven't found anything about what actually went down. You can look it up if you're curious.