Infinity Ward employees file royalty suit

By Kyle Orland Published 28 April, 2010

Claiming $625 million in MW2 bonuses.

A group of 38 current and former Infinity Ward employees have filed a lawsuit against Activision, accusing the publisher of withholding millions of dollars in bonuses related to the sale of Modern Warfare 2.

The lawsuit, filed in Los Angeles Superior Court, seeks payment of anywhere from $75 million to $125 million in royalties as well as an additional $75 million to $500 million in punitive damages, according to a report from G4.

The plaintiffs further allege that royalties are being withheld "in order to force them to keep working for Activision so that Activision could receive delivery of Modern Warfare 3".

"Activision believes the action is without merit," a company spokesman said in response to the suit. "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 lawsuit's 38 plaintiffs include 21 who have left or are leaving Infinity Ward. That number includes ten former employees who've indicated they're signing on with Respawn Entertainment, the new developer being set up by fired IW co-founders Jason West and Vince Zampella.

The allegations in this new lawsuit resemble those made by West and Zampella in a previously filed lawsuit seeking $36 million in unpaid bonuses from Activision.

The news comes as two more Infinity Ward employees - lead programmer Robert Field and human resources and recruiting head Kristin Cotterell - have reportedly left the company, according to their LinkedInprofiles (thanks again, G4).

Two other former Infinity Ward employees - senior level designer Jason McCord and senior artist Ryan Lastimosa - have recently announced via LinkedIn that they are signing on with ReSpawn.

Comments (34) Latest comment 2 years ago

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  • makariel #1 2 years ago

    This is getting better and better, where's the popcorn?

  • Beano #2 2 years ago

    "The lawsuit, filed in Los Angeles Superior Court, seeks payment of anywhere from $75 million to $125 million in royalties as well as an additional $75 million to $500 million in punitive damages, or Robert Kotick's head on a spike, according to a report from G4."

    Fixed.

  • Crea #3 2 years ago

    The hits just keep on comin...

  • MeBrains #4 2 years ago

    I hope they get every single penny.

  • PearOfAnguish #5 2 years ago

    "Activision retains the discretion to determine the amount and the schedule of bonus payments"

    What they are saying in the lawsuit is true, then?

    Must be a delightful place to work.
    Edited by PearOfAnguish at 28/04/10 @ 08:29

  • abot #6 2 years ago

    Just wanted to add the following that is not in EG's article...

    The group's lawyer Bruce Isaacs contends that "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."

  • SilverInfinity #7 2 years ago

    Yes ... keep on going IW employees! :) you have a lot of the gaming community behind you!

  • Haloboy #8 2 years ago

    If you want ice cream, you pay for ice cream. Acticunts.

  • ybfelix #9 2 years ago

    "38 current and former Infinity Ward employees"

    Soon it will became all "former"? I don't think after sueing my company I can still stay there. All left for IW is its name. Not a good way to treat your golden egg goose, Activision.

  • actionfitz #10 2 years ago

    ""Activision retains the discretion to determine the amount and the schedule of bonus payments for MW2"...

    So they are pretty much confirming that everything is true then...
    From what i'm aware, the IW staff agreed to lower salary's (comparatively) on the understanding that they would be taken care of when bonus time came around.
    Seems like Activision baulked at the amount of change it was going to have to pay up and basically caused this whole almighty cluster fuck.

  • Lord_Gremlin #11 2 years ago

    Ok. ok now we know - future Call of Duty (or whatever they'll call em) games comes from ReSpawn studious.

  • Redeye #12 2 years ago

    "Activision retains the discretion to determine the amount and the schedule of bonus payments"

    I get the distinct impression that this one line is going to come back and bite Activision in the wallet.

  • telboy007 #13 2 years ago

    Not surprising, that game sold a hell of a lot of copies! :)

  • flaming.carrot #14 2 years ago

    @EarlBassett

    Not really, considering it was the biggest entertainment product launch in history.

    http://news.cnet.com/8301-13506_3-200030...

  • Ranger101 #15 2 years ago

    Wow, this is huge news in the entertainment industry. Imagine if the cast and crew of Avatar sued James Cameron for withholding payments and royalties.

  • DanForinton #16 2 years ago

    I guess pretty much everyone who works for Activision at some level (with the possible exception of Blizzard) must be watching this mess *really* closely.
    I'd hope that, come the next shareholders meeting, the executive responsible for this clusterfeck is given the reaming they deserve for this entire mess.
    Edited by DanForinton at 28/04/10 @ 09:58

  • Dylbot #17 2 years ago

    Even though I should be utterly sick of this story by now, I really can't get enough of the whole "David and Goliath" nature of it all. Well, sort of, anyway.

  • loopy #18 2 years ago

    Good luck to all of the guys at, or soon to be at Respawn (presumably), with this action. I can only think that Activision have bought this on themselves through their own greed, and probably deserve to pay out big time for the mess they have caused.

  • MonsieurToni #19 2 years ago

    I start to have a feeling that these former Infinity Ward chaps are more greedy than Activision, which is quite a feat. They have lost all the little "fighting for our rights" support I might have had at first. Even demanding a punitive remedy of anything in range of 500 millions is nothing but pure and utter greed.

  • doulema #20 2 years ago

    Kyle, just to let you know, its already up to 26 total people gone from IW. A few more left yesterday as well. That is including the 2 resignations of course. ( Well, yesterday it was figured out )

    The number will be double by next week more or less and thing is that most likely IW will be all brand new or simply over and done with when it comes to whoever has been working there so far.

  • FogHeart #21 2 years ago

    It's strange that IW's bosses signed a contract of employment with Activision that said "We will pay you and your staff bonuses at our discretion, we decide how much and when, no matter how successful the products you make for us."

    If I wanted to jump ship and move over to Respawn, I'd want assurances that they won't sell the company down the river again.

    As for the 17 staff who are suing while still employed, I'll bet they're picking up 'trash' in the car park right now. Yes, I do mean this very moment.

  • LR100 #22 2 years ago

    I'm hoping that this is over soon, I imagine any early stage development of MW3 has been delayed because of all the resignations and lawsuits. I am just hoping that Modern Warfare 3 is turned over to Respawn, or whatever game they come out with continues the story. Fingers crossed the voice actors and such for the characters in MW1/2 will not go back to Activision!

    Half a billion bucks is going to hurt Activision quite badly if they have to pay.

  • icematt12 #23 2 years ago

    When I read this on IGN just after midnight, my first interpretation was that it was completed (in an alpha form anyway). Maybe thats Acti's new plan, get IW to do a bulk whilst they can and then give it to some other company to tweak/finish off.

    It may be David v Goliath, but it looks like David has more than a stone.

  • Quixz #24 2 years ago

    LOL Activision the "deep bench of telent is suing?"..

  • Slipstream #25 2 years ago

    Interesting method of funding their first project I suppose 0.o

    Either that or they found an office...

  • Spekingur #26 2 years ago

    So basically Activision has turned into the Mob - or the government. Or a Vegas casino. I guess they need to call in the Oceans.

  • geeza2020 #27 2 years ago

    traded MW2 in the other day. I felt dirty even handling the case infront of other members of the public. But i traded it for BFBC2 instead so im sure i was forgiven :)

  • Beano #28 2 years ago

    More news...

    Mike Griffith resigns from Activision Publishing
    Edited by Beano at 28/04/10 @ 12:30

  • speedjack #29 2 years ago

    Erm... Doesn't this kind of put an hole in most, if not all of Activisions claim that evil IW bosses were withholding the bonus's from their employees to make Activision look bad.

    Also - when your head of HR and recruiting leaves then alarm bells should really go off.

    I hate to think what the atmosphere is like at IW right now.

  • hardtech #30 2 years ago

    I SHOULD be getting tired of this by now....But I'm really not.

  • jambo74 #31 2 years ago

    Face it - they delay as long as possible while collecting the intrest payments....

  • KyleOrl #32 2 years ago

    @doulema: I'm aware that 26 employees have left Activision at this point. However, only 21 of those former employees were named plaintiffs on this suit.

  • speedjack #33 2 years ago

    'Only' ?!

  • kongzi #34 2 years ago

    In other news: it's spring and animals are having major sex right now