Infinity Ward Employee Group Sues Activision

A group of 38 plaintiffs who call themselves the "Infinity Ward Employee Group" filed suit this morning in Los Angeles Superior Court against Activision, alleging breach of contract, breach of the implied covenant of good faith and fair dealing, violation of California labor code and more, seeking "a large amount of unpaid royalties," reports According to the report the suit says that while $28 million in royalties on Call of Duty: Modern Warfare 2 have been paid, more than $54 million is still due, and the plaintiffs are seeking "to recover between $75 million and $125 million, if not more, in compensatory damages." Also, the suit states that "Activision withheld the property of the IWEG in an attempt to keep the employees hostage so that Activision could reap the benefit of the completion of Modern Warfare 3." They have further details, including a full list of the 38 plaintiffs (not all of whom have left Infinity Ward), and an outline of how they calculated how much money they are seeking, which follows.

  • 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.