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Infinity Ward staffers sue Activision for $125 million, Activision responds

Posted Apr 27, 2010 at 6:37PM EST by Ryan F.

Listed in: Wii, PS3, Xbox 360, PC Gaming Tags: Activision, Infinity Ward, infinity ward employee group
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It looks like the Infinity Ward versus Activision drama is far from over as new report surfaced this morning of another lawsuit filed by a group that call themselves the "Infinity Ward Employee Group" against the Call of Duty publisher, Activision.

According to documents obtained by G4tv, the group, made of 38 current and ex-Infinity Ward staffers filed a suit against Activision citing breach of contract, breach of the implied covenant of good faith and fair dealing, violation of California labor code and unpaid royalties. Bruce Isaacs, one of the IWEG's attorneys at Wyman & Isaacs LLP, said:



"Activision owes my clients approximately $75 million to $125 million dollars. Activision has withheld most of the money to force many of my people to stay, some against their will, so that they would finish the delivery of Modern Warfare 3. That is not what they wanted to do. Many of them. My clients' entitled to their money. Activision has no right to withhold their money -- our money."

The IWEG contains "a significant portion of the members of the creative team" who "designed, developed and delivered" Call of Duty: Modern Warfare 2. According to the lawsuit, $28 million has been delivered to Infinity Ward employees for bonuses related to Modern Warfare 2, but the suit alleges at least $54 million is still due from 2009 profits alone.

They want more than $54 million, however. The IWEG is looking "to recover between $75 million and $125 million, if not more, in compensatory damages." That number's derived from:

 

  • Unpaid bonuses from 2009 and 2010 sales generated by Modern Warfare 2 -- fourth quarter 2009 and first quarter 2010, specifically.
  • Bonuses "due and owing to them" past first quarter 2010.
  • "Bonus/royalty/profit participation" related to "technology/engine" royalties, "other special performance bonuses," "other studio bonuses" or "any other bonus/royalty/profit participation."'
  • Lost value on "restricted stock units" that Activision "promised" would vest (read: own it in your own name and purchase it from Activision) when Modern Warfare 2 sales eclipsed
  • Modern Warfare 1, which "has long ago occurred."
  • Money owed as it relates to Modern Warfare 2 "sister games, including but not limited to" the oft-mentioned Modern Warfare 3, "if Modern Warfare 3 is ultimately delivered and marketed."
  • Interest rates related to the above sums of money.

 

When contacted by the site, an Activision representative said:

 

“Activision believes the action is without merit. Activision retains the discretion to determine the amount and the schedule of bonus payments for MW2 and has acted consistent with its rights and the law at all times. We look forward to getting judicial confirmation that our position is right”.

 

 

Via [G4tv]



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Comments 


 
# ...Ryan F. 2010-04-27 20:06
Man, this is getting ugly as the days goes by

Reply
 

 
-3 # HahahaGuest 2010-04-27 20:12
This is exactly what they get. i knew it was going to happen eventually. and the best part is they're going ro win.

ps: Yay first to post (First time)

Reply
 

 
# ...symbal 2010-04-27 20:28
Wouldn't you just love to be one of Activision's other developers right now, working their arses off on games thinking Have i just signed my soul to the Devil and have to work here for the rest of time before i get what i was promised. Activision might just have the law partially on their side here but their reputation has taken a big Swam dive into the Shi**er.

Reply
 

 
# this is what you would call...Dorkus-1983 2010-04-27 20:34
a mexican standoff, personally i'm a little afraid of going into the video game business and get shi**ed on like this! greed makes the world go under, imho

Reply
 

 
# RE: this is what you would call...Navani 2010-04-27 20:39
Quoting Dorkus-1983:
a mexican standoff, personally i'm a little afraid of going into the video game business and get shi**ed on like this! greed makes the world go under, imho


This happens everywhere, mainly on smaller and more unimportant scales so it's not reported as widely

Reply
 

 
# RE: Infinity Ward staffers sue Activision for $125 million, Activision respondsMangoScango 2010-04-27 20:52
Devs vs. Publisher.

Place your bets!

Reply
 

 
# RE: Infinity Ward staffers sue Activision for $125 million, Activision respondsGuest 2010-04-27 21:53
Maybe the CoD series will finally die off. Not saying that it is bad, but it's.. been going downhill.

Reply
 

 
-1 # RE: RE: Infinity Ward staffers sue Activision for $125 million, Activision respondsMusev 2010-04-28 05:50
sheep!

Reply
 

 
# RE: Infinity Ward staffers sue Activision for $125 million, Activision respondsGuest 2010-04-27 22:02
For God's sake, Activision
The drama never ends with you, does it?
You're like the Paris Hilton of the gaming Industry...only less slutty and more assholey

Reply
 

 
# LMFAO!Guest 2010-04-28 00:31
right on the head pulse, I'll be expecting the activision "exiting car vag flash shot" any day now. Maybe even a west/zampella night vision porn

Reply
 

 
# RE: LMFAO!Guest 2010-04-28 08:23
That's scary.
You're scary.
xD
Now something with Cliff Blezenski, THAT I wouldn't mind >.>'

Reply
 

 
# ok, maybe 2-9 times...Guest 2010-04-28 22:41
Well I NEVER, except that one time, lol

hmmm, not cliffy B
His over use of the word "epic" causes desert like conditions :P and his chumyness with Fallon gives me agita.

It's slim pickins in the VG industry, lmao

Reply
 

 
# RE: ok, maybe 2-9 times...Guest 2010-04-29 08:08
Hey, that's nothing a little duct tape can't fix

Reply
 

 
# RE: Infinity Ward staffers sue Activision for $125 million, Activision respondsGuest 2010-04-27 23:58
About damn time..... :D

Reply
 

 
# Infinity Ward staffers sue Activision for $125 million, Activision respondsGuest 2010-04-28 03:06
activision effed up big time.

Reply
 

 
+1 # so...symbyosis 2010-04-28 07:46
since all this money is spent on legal fees, who the hell is gonna patch Modern Glitchfare 2?

Reply
 

 
# bad comapnysgr8t.g 2010-04-28 13:13
my friend at CCP who make eve online told me how they are one of the best and nicest gaming companys to work for in this business so hopefully activision will be made an example of and all these firms will start paying respect to theyr employees

Reply
 

 
# ..Guest 2010-04-28 16:03
this is going in the wrong wau :-?

Reply
 

 
# That what IW GETS! lol!!Guest 2010-04-29 16:33
I remember when jeson west and zack zampella did the bestbuy interview and they were just really bashing the pc gamers calling them names and everything.

Now look at them, i hope they lose, and i will be sure to steer clear of any new games they will be releasing under their new development company name of RESPAWN ENTERTAINMENT under the EA umbrella, because RESPAWN ENT. is just the new name for the new infinity ward#2, they won't fool me again.

That's what the trash gets.

Reply
 

 
# That what IW GETS! lol!!Guest 2010-04-29 16:39
Good for IW! not so funny now is it Jason W. and Zack Z.?

Yeah, i still remimber that ugly BestBuy interview you guys did when you were making fun of the pc community.

Now if Acti can just get rid of Rob B. 402.

Reply
 

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