Lawsuit Against Activision

April 28 2010
Lawsuit against Activision

The on-going battle thickens as a group of Infinity Ward employees file a new lawsuit against publisher Activision.

The past few weeks and months in the Call of Duty world have featured whirlwinds of speculation and chaos, but there doesn't appear to be an ending in sight as the plot thickens even further. A group of 38 Infinity Ward employees, called the "Infinity Ward Employee Group", have filed a new lawsuit against the Call of Duty publisher. The group consists of current and recently resigned employees who claim that Activision forced them to stay at the developer until they delivered Modern Warfare 3 or they would not receive their earned unpaid royalties.

It is believed that Activision has paid the employees an amount of $28 million but the employees want at least $54 million more due to the profits that Modern Warfare 2 made. A short extract from the lawsuit can be read below.

* 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.

The employees have also claimed that they were held "hostage" at the company until they delivered Modern Warfare 3 or they would not receive certain amounts of their bonuses. The lawsuit speculates many times that Activision breached contracts, including the California Labor Code. This law tells us that Activision had a duty to to pay all of the Infinity Ward Employee Group members the money they are owed within 72 hours of the termination of their employment.

Activision have since made a short response regarding the matter.

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.

The full list of plantiffs mentioned in the suit (not all of them have left Infinity Ward): Todd Alderman, Frank Gigliotti, Roger Abrahamsson, Brad Allen, Mohammad Alavi, Richard Baker, Chad Barb, Keith Bell, Chris Cherubini, Taihoon William Cho, Chris Dionne, Joel Emslie, Robert Field, Steve Fuduka, Robert Gaines, Chance Glasco, Preston Glenn, Joel Gompert, Chad Grenier, Mark Grigsby, John Haggerty, Jacob Michael Keating, Chris Lambert, Ryan Lastimosa, Fairfax S. McCandlish IV, Jason McCord, Brent Mcleod, John Paul Messerly, Stephen Miller, Zied Rieke, Jon Shiring, John Slayback, Richard Smith, Geoffery Smith, Jiesang Song, Todd Sue, Rayme C. Vinson and Lei Yang. All are represented by Wyman & Issacs LLP located in Los Angeles.

It's very clear that there is still a lot of trouble at the studio and publisher and we don't expect the storm to blow away just yet.

Source: G4TV »

~ Boyle111