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."