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Not a settlement: Activision pays Infinity Ward Employee Group $42 million
Posted on May 15, 2012 by Paige Carlson

Activision has recently paid $42 million to the Infinity Ward Employee Group- a group filing a lawsuit against Activision. The check given to the group is “only a small portion” of what the developers are owed, says their attorney who further calls the move a “cynical attempt to look good.”

In 2010 there were just 38 plaintiffs. Included are Infinity Ward’s Lead Designer, Todd Alderman, and Lead Software Engineer Frank Gigliotti. The group is led by Jason West and Vince Zampella who were former Infinity Ward co-heads. Their claim is that Activision didn’t pay them their royalties for their work on Call of Duty: Modern Warfare 2.


The $42 million is in addition to $22 million already paid (which is the first quarter launch bonus) as well as ten percent interest. The $42 million will be divided among 40 individuals. However, this payment is not a part of a settlement. Activision CEO, Bobby Kotick, paid the amount the company believed was owed so that they could focus on their countersuit against West and Zampella. The claim against the two is about a breach of contract.


However, the Infinity Ward Employee Group’s attorney claims that Activision owes $75-125 million where at least $54 million is owed from 2009 profits not including unpaid bonuses. The Infinity Ward Employee Group is also seeking $75-500 million in “punitive damages”.


Although the trial is scheduled for Tuesday, May 29, Activision is seeking to postpone the trial for an extra 30 days in order to prepare with a new attorney. 


Sources:  The Verge, USA Today

Paige Carlson - Staff Writer paige (@) | all author's articles

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