Former Infinity Ward staff sues Activision for half a billion

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Matthew DeCarlo

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The feud between former Infinity Ward staffers and Activision is heating up, as the ex-employees sue the publisher for half a billion dollars. Under the name "Infinity Ward Employee Group" (IWEG), the plaintiffs accuse Activision of breach of contract, breach of the implied covenant of good faith and fair dealing, violation of California labor code and more.

The group, which is comprised of 38 people who made up a bulk of the creative team behind Modern Warfare 2, is after a hefty sum of unpaid royalties. According to one of IWEG's attorneys, Activision owes the group around $54 million in profits from 2009 -- and it wasn't just a simple case of "I forgot." It's alleged that Activision withheld the money to force some employees to stay against their will so they would finish Modern Warfare 3.


IWEG isn't just after the $54 million, though. The workers are out for $75 to $125 million, or more, in compensatory damages. Furthermore, because Activision "withheld the property of the IWEG in an attempt to keep the employees hostage" so it could reap the benefit of MW3, the group seeks an additional $75 to $500 million for punitive damages. You can read a full summary over at G4 TV.

Activision has issued a brief response to the suit, saying "the action is without merit," and that "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."

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Activision=Douchebaggery big time, to be honest, if this is the case I'd be really hard pressed to want to buy MW3 if this statement is true, especially if still going to be published by Activision.
 
They are being punished by the gaming gods for not having dedicated servers for the PC community :)
 
I agree man.. they work those poor developers work so hard and now they're trying to screw them out of their paychecks.
 
I keep reading comments trashing Activision, and blindly supporting these game developers...I'm sorry, but maybe you should all get out of your parents' basement more often...sounds to me like these developers are pretty greedy trying to get up to 500 million dollars through suing...and they go right to working in some faction with Electronic Arts which I'm pretty sure would violate any non-compete clause...Seems to me that these developers (especially the two heads) don't understand contracts and believe that somehow since the game they developed earned so well that THEY believe they are entitled to that money...give me a break...if I work for a corporation and they have record blowout earnings I am not entitled to a single penny...this lawsuit will be thrown out...the two heads of IW poached developers and were dealing with Activision's direct competitor EA while still under the employ of Activision...hook, line and sinker...these greedy morons are toast, but I wouldn't expect anyone here to actually understand any of this
 
Guest said:
I keep reading comments trashing Activision, and blindly supporting these game developers...I'm sorry, but maybe you should all get out of your parents' basement more often...sounds to me like these developers are pretty greedy trying to get up to 500 million dollars through suing...and they go right to working in some faction with Electronic Arts which I'm pretty sure would violate any non-compete clause...Seems to me that these developers (especially the two heads) don't understand contracts and believe that somehow since the game they developed earned so well that THEY believe they are entitled to that money...give me a break...if I work for a corporation and they have record blowout earnings I am not entitled to a single penny...this lawsuit will be thrown out...the two heads of IW poached developers and were dealing with Activision's direct competitor EA while still under the employ of Activision...hook, line and sinker...these greedy morons are toast, but I wouldn't expect anyone here to actually understand any of this

And it sounds to me like you have no idea what you're talking about! Seeing as no contract details have been released (and I'm sure won't be until trial) we can have no idea about what's in their contracts. Also, if I was treated like they were 'allegedly' treated by my employer you can be sure that I'd be looking for another job too!
 
I'm guessing that a royalty contract doesn't matter then to you, If I were a developer and the game was a huge success, then yes, I'd expect the royalties due and especially bonuses, instead of my bonuses being withheld just because they want something else. I'm glad the two head developer started Respawn Entertainment, I would if I got canned by them after that.
 
and you should expect to be fired when communicating with a direct competitor while still employed, while at work on the company's time, on a company machine...you all want to take sides against the company right away...I'm not even sure why everyone has such a distaste for Activision...maybe because they make money and are successful? I take the flip side to this case and get the same unfounded BS remarks....let's wait for trial because I can tell you right now if they wanted money that was supposedly due them then leave it at that...now we are hearing they are suing for $500 million...can't wait for this unfounded case to be thrown out the door...
 
Non-compete clauses are invalid in California, where both Infinity Ward and Activision are based. (California Business & Professions Code section 16600)
 
Guest #6 & 9, they aren't actually after the $500 million but more the actual damages of $75 to $125 million. They want what appears to be rightfully theirs in unpaid bonuses from 09/10, unpaid technology and engine rights, stocks, and what appears to be future MW3 work. Since we don't actually have any contract details until at least the trail calling them greedy morons who's case should get thrown out and defending Activision seems a bit ridiculous.
 
I keep reading comments trashing Activision, and blindly supporting these game developers...I'm sorry, but maybe you should all get out of your parents' basement more often...sounds to me like these developers are pretty greedy trying to get up to 500 million dollars through suing...and they go right to working in some faction with Electronic Arts which I'm pretty sure would violate any non-compete clause...Seems to me that these developers (especially the two heads) don't understand contracts and believe that somehow since the game they developed earned so well that THEY believe they are entitled to that money...give me a break...if I work for a corporation and they have record blowout earnings I am not entitled to a single penny...this lawsuit will be thrown out...the two heads of IW poached developers and were dealing with Activision's direct competitor EA while still under the employ of Activision...hook, line and sinker...these greedy morons are toast, but I wouldn't expect anyone here to actually understand any of this

Really rather senselessly ridiculous comment, I write and sign contracts with all new inductees on my employer's behalf, and without completely reading/understanding the actual signed contracts here, I wouldn't take any sides.
 
From what I have read it sounds like the developers got screwed. But as others have stated we are missing a lot of details, so it may come out Activsion what in the right. For now tho im rooting for the developers :p.
 
If this is all correct from Infinity Wards POV then I hope they every penny. Large companies like Activision are changing the industry miling these huge cash cows and have a responsiblity to make sure the guys writing them are at least getting what they are owed. If they withheld payment to force people to stay for MW3 thats unbelievably bad.

Already I am of the opinion that I will not be purchasing any subscription based fps ala new MW and I have yet to purchase the map pack if at all. If there had been some special ops updates and maps I would have but now I fear the price for that would be half the price of the game again and they are joking if they think thats fair. I bought a game called "Battlefield:Bad Company 2" a couple of weeks ago and haven't been able to stop playing. Going back to MW2 feels like playing in a shoe box with hit boxes that are twice the size of the characters, firing guns with heatseeking bullets :)
 
...I'm sorry, but maybe you should all get out of your parents' basement more often...
that comment, combined with the fact that you remain an anonymous Guest, devalues your entire contribution. i could, quite accurately, predict your stance on a number of topics just based upon that comment, but then i'd be a giant hypocrite.

I wouldn't expect anyone here to actually understand any of this
i feel like i know who you are just by reading this. you irreparably damaged the validity of your comment, but then i wouldnt expect you to understand exactly why. oh darn it, now i'm a hypocrite too!

..publisher-developer relationships have had a dirty history, but when you consider the sheer degree of dissonance between the business dynamic, you shouldn't be surprised when things like this occur. i'd actually be very surprised if this was the first occurrence of this kind of treatment in the gaming industry.
 
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