Infinity Ward Plaintiffs Claim: Activision Kept Us Hostage
Well, the numbers are in for the legal war that has ensued between Activision and Infinity Ward and not surprisingly, those numbers are big.
As per the rundown at G4TV, a lawsuit has been filed by the "Infinity Ward Employee Group" against Activision; there are a total of 38 plaintiffs and they allege "breach of contract, breach of the implied covenant of good faith and fair dealing, violation of California labor code," and more. In the legal document submitted to the Los Angeles Superior Court, the Group is seeking anywhere between $75 million and $125 million in damages. Said Bruce Isaacs, one of the Group's attorneys at Wyman & Isaacs LLP:
"Activision owes my clients approximately $75 million to $125 million dollars. 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' entitled to their money. Activision has no right to withhold their money -- our money."
The suit claims that while Activision has indeed paid $28 million in bonuses to IW employees, the Group is still due at least $54 million in 2009 profits alone. That's below the aforementioned $75-$125 million, but they get that range from unpaid bonuses due to Modern Warfare 2, bonuses "due and owing to them" past the first quarter of 2010, a variety of other bonuses, lost value on "restricted stock units," money owed as it relates to MW2 "sister games, including but not limited to" the apparently upcoming MW3, if it is indeed released at some point, and interest rates. The Group further claims that Activision withheld their property "in an attempt to keep the employees hostage so that Activision could reap the benefit of the completion of Modern Warfare 2."
Activision's response?
"Activision believes the action is without merit. 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."
4/27/2010 9:12:03 PM John Shepard
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Comments (33 posts)
Kowhoho
Tuesday, April 27, 2010 @ 11:31:56 PM
LividFiction
Wednesday, April 28, 2010 @ 2:22:40 AM
D1g1tal5torm
Wednesday, April 28, 2010 @ 3:50:44 AM
D1g1tal5torm
Wednesday, April 28, 2010 @ 7:01:40 AM
Imagi
Wednesday, April 28, 2010 @ 8:53:45 AM
bridgera
Wednesday, April 28, 2010 @ 12:35:56 PM
FxTales
Wednesday, April 28, 2010 @ 4:23:33 AM
BikerSaint
Wednesday, April 28, 2010 @ 5:09:16 AM
Actually, Mell was correct.
It is "Reap what you sow"
Sow doesn't always mean a female pig....
sow
verb,sowed, sown or sowed, sow·ing.
–verb (used with object)
1. to scatter (seed) over land, earth, etc., for growth; plant.
2. to plant seed for: to sow a crop.
3. to scatter seed over (land, earth, etc.) for the purpose of growth.
4. to implant, introduce, or promulgate; seek to propagate or extend; disseminate: to sow distrust or dissension.
5. to strew or sprinkle with anything.
–verb (used without object)
6. to sow seed, as for the production of a crop.
@D1g1tal5torm,
You know something?
You could have really took the time to correct him in a much more productive way, instead of coming off sounding like just another a-hole.
Last edited by BikerSaint on 4/28/2010 5:14:07 AM
BikerSaint
Tuesday, April 27, 2010 @ 10:23:58 PM
Reply
....."In short," reads the lawsuit, "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."
What does the IWEG want in return? "At least in the additional amount of $75 million to $500 million as an award for punitive damages," continues the lawsuit, citing a number calculated from the blockbuster sales of Modern Warfare 2 and "Activision's net worth."
The IWEG also believes Activision violated California Labor Code during their alleged failure of payment.
"Activision has a duty to pay all of the members of the IWEG all of the money they are owed [...] within 72 hours of the termination of their employment," reads the lawsuit. "Activision, however, has failed to do so."
Sic em IWEG, plus 3X the punitive damages too!
Darthvintage
Tuesday, April 27, 2010 @ 10:48:42 PM
Deleted User
Tuesday, April 27, 2010 @ 10:29:53 PM
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johnld
Tuesday, April 27, 2010 @ 10:41:40 PM
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This just seems like an admission that they are screwing over infinity ward employees. i can see somewhat of having the discretion to determine the amount but the schedule? so if they get fired, they dont have to pay them since they dont work for the company anymore. Thats probably what they did to the infinity ward heads.
Darthvintage
Tuesday, April 27, 2010 @ 10:45:13 PM
Reply
Kowhoho
Tuesday, April 27, 2010 @ 11:34:00 PM
BikerSaint
Tuesday, April 27, 2010 @ 10:48:19 PM
Reply
SnipeySnake
Tuesday, April 27, 2010 @ 11:48:25 PM
___________
Wednesday, April 28, 2010 @ 2:39:40 AM
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D1g1tal5torm
Wednesday, April 28, 2010 @ 3:54:14 AM
Reply
MysteriousMagus
Wednesday, April 28, 2010 @ 6:29:03 AM
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bridgera
Wednesday, April 28, 2010 @ 12:32:05 PM
JackC8
Wednesday, April 28, 2010 @ 6:57:13 AM
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Typical load of BS from craptivision. I'm sure Kotick will be instructing his lawyers to drag this thing out for as many years as possible.
bridgera
Wednesday, April 28, 2010 @ 12:29:41 PM
That's refered to as an Unconscionability Clause, which is usually thrown out in court because one side has superior bargaining power and gets whatever they want into a contract.
There are too many scumbags trying to do stuff like that nowadays by writing in a stupid clause into a contract, and trying to screw someone over, rather than earn an honest buck.
I'm behind IW and hope Activision gets it.
Nynja
Wednesday, April 28, 2010 @ 12:24:27 PM
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What if Activision loses the lawsuit. They pay out the bonuses promised to Infinity Ward employees which forces them to close more studios, due to poor reception from their other cash cows. Stocks plummit. Kotick is now considering selling Activision and walk away as filthy stinking rich billionaire.
Who would have enough expendable resources to snap all those licenses for well known franchises? EA, Ubisoft, Square-Enix, Capcom, Sony? Or even worse, Microsoft?
Could anything good even come out of such a transaction?
Last edited by Nynja on 4/28/2010 12:25:19 PM

Call of Duty: Modern Warfare 2









FxTales
Reply
Tuesday, April 27, 2010 @ 10:21:09 PM