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“Infinity Ward Employee Group” Suing Activision for $150 to $625 Million

04/27/2010 Written by Dan Massi

Oh my. The battle of Infinity Ward and Activision has heated up – and it has heated up drastically. The two companies have had quite a shuffle since the firings of Infinity Ward heads Vince Zampella and Jason West. It seems that employees from the Modern Warfare 2 developer are leaving by the droves, and finally, they’ve gotten together to hit Activision where it hurts most.

News broke today that former Infinity Ward employees, along with current members of the team, are suing Activision for breach of contract. The lawsuit filed was retrieved by G4, revealing that 38 plaintiffs are involved, calling themselves the “Infinity Ward Employee Group.” The group are seeking “to recover between $75 million and $125 million, if not more, in compensatory damages,” along with another $75 to $500 million for “punitive damages.” Also, according to the lawsuit, Infinity Ward was only paid $28 million in bonuses – but apparently, Activision still owes another $54 million for the 2009 year. However, the group wishes for more money from the company, due to the following:

  • 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 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.

Bruce Isaac’s, the group’s lawyer, has said that Activision is withholding most of the money to keep Infinity Ward members, so they continue work on the inevitable Modern Warfare 3.

“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 are entitled to their money. Activision has no right to withhold their money — our money.”

Due to the accusations, Activison has made a comment, stating that they have “acted consistent with its rights and the law at all times.”

“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.”

[Source/Via]






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23 Responses to ““Infinity Ward Employee Group” Suing Activision for $150 to $625 Million”

  1. Y do these people keep fighting they need to stop just like the companies fighting over fallout

  2. the sooner this is over the sooner everyone can move on to more compelling news.

  3. shadowjin says:

    @Bandicoot

    this is extremely compelling news.. learn your history of activision, Atari, IW, EA, 2015 studios if you want details.

  4. @Bandicott96

    you kidding me?!?!?! this shit is epic

    I now understand why MW2 was such a piece of shit. Fucking Activision all they know how to do is kill games

  5. peroxadic says:

    This is more “compelling” than most of the other “news” on this website. Now THIS is news, and its damn interesting.

    Plaintiffs always demand more than what they really deserve, but in this case, I hope they get every, single, dime. Karma is a bitch and greedy ass Activision is going to hurt from this.

  6. Activision could use a good smack upside the head.

  7. Brent says:

    Activision is being sued for basically the same reason they left Atari to start a new company in the first place. Ironic, isn’t it?

  8. Brent says:

    And a note to PSLS:
    PLEASE do not post pictures of Mr. Kotick. (Preferably from the chest up) Me and everyone else in the world have a deep-down fear of his face and whenever we see it we get nightmares. Also, for every posting of his picture, a puppy is put in a blender. Thank You. :)

  9. vesra says:

    @brent
    i don’t get scared by his face. but i’ll be d***ed if it doesn’t make my stomach turn and give me the runs.

    on topic, they deserve the money that is owed to them. just as anyone reading this, or the 500000 other sites articles, would want any money owed to them as well. perhaps after this is over, activision will consider making some new IP’s instead of just milking what they currently have. very doubtful though.

  10. @Brent

    LOL! Yeah, his face is kinda scary.

    Too bad this whole Infinity Ward/ Activision war is far, far from over…I hope gamers don’t mind holding on to that copy of MW2 a bit longer….

  11. Ivan_PSP says:

    I hope Activision losses the case and i wish that they defunct Infinity Ward for good. SOCOM 4 and Medal of Honor are here to keep the MW2 fans happy.

  12. TheHater says:

    @Brent
    why pay $13 to see the new Freddy movie for a “good scream” when you can look at Bobby face?

  13. Silenus says:

    “We look forward to…judicial confirmation…”

    Confirmation of what? That you’re douche bags? That you’re not in the right? That legally you be FUBAR’d?

  14. I’m not getting paid enough let’s strike……. but the lesson here is ‘stop worrying about getting your share holders paid and treat your employees with respect

  15. I hope to hell this is the end of Activision, first 2K and 3D Realms, then Activision try this shit too. Damn, I hope Kotick goes bankrupt.

  16. Graey says:

    I do hope they get their money. I assume they ask for more so they can kind of get it pushed down to the amount they are rightfully owed. Then again I’m only speaking from the standpoint that if they are owed the money then it should be rightfully given to them.

    Much respect for them standing up for themselves.

  17. dbigfeet says:

    This is better than any game story I have played

  18. SPD55 says:

    This might be a good reason to boycott Activision over. Screwing their “employees” over money owed and contracted.

    “WE THE GAMERS” can make a difference when Activision loses sales over a specific period of time then maybe the board of directors would “FIRE” Lord Kotick and send him off to the planet Hoth for a deep chill.

  19. @consequence – are you saying that if someone owed you $150 million you would just up and walk away from that? I know I wouldn’t.

    @SPDD55 – wasn’t them selling us a glitchy rehashed crap job of a game enough to stop buying their products? It was for me. This is just icing on the cake.

  20. @bigwhoop magazine
    no I wouldn’t i just think these companies should stop fighting because less games will b made or crappy ones will b made

  21. This story gets better and better everytime. I wonder how many tears have shed from big ole bobbies eyes in the last few weeks. Its kinda crappy cause Activision may “legally” be right for how the employee’s were paid, if it was in their contracts to control that. Which sucks, but I hope to god activision loses this one and takes the hit. That’s a terrible way to treat your employee’s who are making the biggest game your company has to offer just to force them to pull another one out of their asses.

    MW2 wasnt that great anyways, and now it seems MW3 will either not exist, or be just like MW2 and will be a copy of the last game in the series with new maps slapped in. Then charge you $15 for a few maps from the last game in the series, and a new map, that should’ve been shipped with the game originally. This is why I play MAG, better company, better values and FREE DLC.

  22. SpeCtR says:

    agrees with queef…altho bfbc2 has had my attention lately…but when u go 109-19 in a domination match…what more can u do in mag :\

  23. Xael says:

    I’m very interested in seeing how the dust on all of this will settle

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