Infinity Ward employees file lawsuit against Activision

G4 has obtained a copy of a lawsuit filed in the Los Angeles Superior Court by 38 plaintiffs, calling themselves the “Infinity Ward Employee Group,” against Activision.

According to G4, IWEG contains a “significant portion of the members of the creative team” responsible for Call of Duty Modern Warfare 2.

Amongst other things the Infinity Ward Employee Group (IWEG) alleges breach of contract, breach of the implied covenant of good faith and fair dealing and the violation of California labour code. The group seeks the award of a substantial amount of claimed unpaid royalties.

“Activision owes my clients approximately $75 million to $125 million dollars,” said Wyman & Isaacs attorney Bruce Isaacs. “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 lawsuit claims that $28 million in royalty payments has been delivered as bonuses, but at least $54 million is still due from 2009 profits alone. However, the IWEG is seeking much more than this: between $75 million and $125 million in compensatory damages and up to $500 million as an award for punitive damages.

The lawsuit states: “In short, 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.”

Activison has responded to the allegations with this statement: “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.”

Since the sacking of Jason West and Vince Zampella, Infinity Ward has been leaking staff on an almost daily basis, some of whom are already confirmed to have taken positions at the newly formed Respawn Entertainment.