Activision Pays Infinity Ward Employee Group $42 Million, Not Settlement

<p>Activision issued a &dollar;42 million check to the &OpenCurlyDoubleQuote;Infinity Ward Employee Group” after reviewing all the evidence leading up to the high-profile lawsuit against former Infinity Ward co-heads Jason West and Vince Zampella&period; Infinity Ward Employee Group’s lawyer&comma; Bruce Isaacs&comma; confirmed receiving a check for &dollar;42 million&comma; which includes 10 percent interest and is in addition to the &dollar;22 million that has already been paid for the promised first quarter launch bonus&period;<&sol;p>&NewLine;<p>Isaacs called the payment &OpenCurlyDoubleQuote;a cynical attempt to look good before the jury trial&period;”<&sol;p>&NewLine;<p>In speaking with <a href&equals;"http&colon;&sol;&sol;www&period;theverge&period;com&sol;gaming&sol;2012&sol;5&sol;14&sol;3020671&sol;activision-pays-42m-to-former-infinity-ward-devs-not-a-settlement">Polygon<&sol;a>&comma; Isaacs said&comma; &&num;8220&semi;I can confirm for you that it happened today&period; I can also tell you that although it is a meaningful payment it is only a small portion of what we are seeking in litigation&period; It is outrageous that they made us wait&comma; they obviously knew they owed the money and this just shows that they breached the contract&period;&&num;8221&semi;<&sol;p>&NewLine;<p>The original Infinity Ward Employee Group suit included 38 plaintiffs in 2010&comma; including notable figures like former Infinity Ward Lead Designer Todd Alderman and former Infinity Ward Lead Software Engineer Frank Gigliotti&comma; both of whom now work with West and Zampella’s new studio&comma; Respawn Entertainment&period; The group alleged that Activision failed to pay royalties for work on <em>Call of Duty&colon; Modern Warfare 2&period;<&sol;em><&sol;p>&NewLine;<p>Interestingly enough&comma; Isaacs says that that the payment was not part of a settlement and that following the discovery phase&comma; Activision CEO Bobby Kotick agreed that since the evidence didn’t implicate 40 members of the Infinity Ward Employee Group&comma; the company decided to pay the amount it believed former employees were owed and focus on the legal efforts with West and Zampella&period;<&sol;p>&NewLine;<p>&&num;8220&semi;Activision owes my clients approximately &dollar;75 million to &dollar;125 million dollars&comma;&&num;8221&semi; Isaacs <a href&equals;"http&colon;&sol;&sol;www&period;g4tv&period;com&sol;thefeed&sol;blog&sol;post&sol;704273&sol;update-38-infinity-ward-employees-file-lawsuit-against-activision-over-royalties-alleges-devs-held-hostage&sol;" target&equals;"&lowbar;blank">told G4 in 2010<&sol;a>&period; G4 reported that &&num;8220&semi;the suit alleges at least &dollar;54 million is still due from 2009 profits alone&comma;&&num;8221&semi; with unpaid bonuses owed past that&period; The group is also seeking an additional &dollar;75 to &dollar;500 million in &&num;8220&semi;punitive damages&period;&&num;8221&semi;<&sol;p>&NewLine;<p>While the payment is not part of a settlement&comma; the Infinity Ward Employee Group can still go after the remainder of the money they claim they are entitled to&period; Since the &dollar;42 Million was not negotiated&comma; but based on the first request before damages inflated the amount&comma; the group can still pursue the full amount of the law suit&period;<&sol;p>&NewLine;<p>Isaacs tells Polygon the group still plans on pursuing the suit against Activision&period;<&sol;p>&NewLine;<p>&&num;8220&semi;They are just as interested as they were before hand&comma;&&num;8221&semi; he said&period; &&num;8220&semi;We are seeking all kinds of bonuses per the contract&period; This payment relates to one particular game and one particular time period and one particular bonus&period;&&num;8221&semi;<&sol;p>&NewLine;<p>&lpar;Via <a href&equals;"http&colon;&sol;&sol;www&period;theverge&period;com&sol;gaming&sol;2012&sol;5&sol;14&sol;3020671&sol;activision-pays-42m-to-former-infinity-ward-devs-not-a-settlement">Polygon<&sol;a>&rpar;<&sol;p>&NewLine;

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