Activision Wins Dismissal of One of Two Former Executives’ Fraud Claims

[[SS]Chief]

From here:

Activision Blizzard Inc. (ATVI), the No. 1 U.S. publisher of video games, won dismissal of one of two fraud claims in its litigation against the former heads of its Infinity Ward studio, whom the company fired in 2010.
State Superior Court Judge Elihu Berle in Los Angeles agreed today with Activision that a fraudulent-inducement claim made by Jason West and Vincent Zampella, creators of the blockbuster game “Call of Duty: Modern Warfare 2,” shouldn’t go forward. He let stand a claim for promissory fraud.
West and Zampella said that they were considering leaving Activision when their contracts expired in October 2008. They alleged that Activision made false promises to string them along and create “Modern Warfare 2,” which became the bestselling game of 2010, before firing them.
The former executives added the claims to a 2010 lawsuit in which they alleged that Activision, based in Santa Monica, California, fired them to avoid paying millions of dollars in royalties for the game.
Activision maintains they were fired because they were in secret talks with rival Electronic Arts Inc. to set up a new development studio.
In a December 2010 cross-complaint, Activision asked for $400 million in damages from Electronic Arts for interfering with the contracts of its employees.
A trial on all remaining claims is scheduled for May 7.
The case is West v. Activision, SC107041, California Superior Court (Los Angeles County).

[[SS]Rator]

whoa, let me know how that goes with EA.

[[SS]Chief]

Update:

Ex-Infinity Ward developers receive $42 million from Activision Payment not a settlement

Before its lawsuit against former Infinity Ward co-heads Jason West and Vince Zampella goes to court, Activision has paid $42 million to some of the ex-Call of Duty developers.

Activision decided that before taking a myriad of former Infinity Ward developers to court, it would be give a $42 million check to the Infinity Ward Employee Group, in a payment that isn't in any form a settlement. The payment includes 10 percent interest, which accompanies the $22 million already paid by the Call of Duty publisher for the first quarter launch bonus.

The attorney for the Infinity Ward Employee Group Bruce Isaacs confirmed the payment was made. However, he described it as a "cynical" attempt by Activision "to look good before the jury trial."

"I can confirm for you that it happened today. 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. It is outrageous that they made us wait, they obviously knew they owed the money and this just shows that they breached the contract."

Activision CEO Bobby Kotick apparently agreed that since the evidence didn't implicate the Infinity Ward Employee Group, which consists of 40 plaintiffs including notable ex-developers of the studio, it would pay the necessary amount required by the Modern Warfare developers and instead focus their legal battle on just West and Zampella. However, Isaacs stated the group will still pursue the suit against the publisher as the payment isn't related to a settlement.

"They are just as interested as they were before hand. We are seeking all kinds of bonuses per the contract. This payment relates to one particular game and one particular time period and one particular bonus."

Activision and Infinity Ward's trial will go to court on May 29.

[[SS]Wally]

Sounds interesting

[[SS]Chief]

Activision settles with 'Modern Warfare 2' makers

The makers of "Call of Duty: Modern Warfare 2" and game publisher Activision Blizzard Inc. have agreed to lay down arms in a legal fight over millions of dollars in royalties.

The two sides said Thursday that they had settled the matter out of court. The terms were not disclosed.

Activision, a subsidiary of France's Vivendi SA, said it doesn't believe the settlement's one-time expense will materially affect its earnings outlook for the current quarter or calendar year due to unexpectedly good performance recently.

Jason West and Vincent Zampella, former heads of Activision game studio Infinity Ward, had sued Activision for wrongful dismissal after the company fired them in March 2010. The pair claimed they were fired to avoid paying them bonuses and sought more than $36 million based on the game's profits following its release in November 2009. They later raised their claim to over $1 billion.

Activision countersued, accusing them of conspiring to take their secrets to rival Electronic Arts Inc. and breaching their contractual and financial duties. Activision also said West and Zampella poisoned the atmosphere at Infinity Ward against Activision, prompting dozens of developers to follow them out the door.

The pair later formed a new company called Respawn Entertainment LLC, which is currently developing games for EA.

Two weeks ago, Activision and EA settled a lawsuit over whether EA unfairly recruited the executives while they were under contract.

EA hailed the settlement between Activision and the game developers as a victory.

"Activision's refusal to pay their talent and attempt to blame EA were absurd. This settlement is a vindication of Vince and Jason, and the right of creative artists to collect the rewards due for their hard work," it said in a statement.

Shares of Activision rose 9 cents to $11.83 in after-hours trading after closing down 17 cents, or 1.4 percent, at $11.74. EA shares were unchanged after-hours but had closed down 53 cents, or 3.8 percent, at $13.62 in the regular session.

I’m sure someone got their payday....Cha-Ching!