Activision Lawsuit

On the same day that Activision releases its latest title in the Wolfenstein franchise, GamesIndustry.biz can confirm that a number [ Remark: anyone left? ] of the team responsible for the multiplayer portion of the game have been laid off.
Endrant Studios, based in England, have been working with Raven on Wolfenstein since the founding of the studio in July 2008. [ Remark: now see: http://endrantstudios.com/about/ ]
To classify the headline, it is not unusual to let go gaming industry workers after a game title release to save by running costs. If there is no guarantee of a follow-up project, the situation intensifies.

So these 2 numbnuts (West and Zampella) that were ultimately responsible for Modern Warfail 2 are now working in part for EA? Just when you thought EA couldn't get any worse than was.

38 former and ex-Infinity Ward employees filed suit against Activision yesterday. There's also one less executive at Activision now, president and CEO of Activision Publishing Mike Griffith. Griffith, however, oversaw Infinity Ward in his role at Activision Publishing. Is there a connection?

Activision revealed Griffith's resignation in an SEC filing yesterday afternoon. Within the SEC filing itself, Activision did not cite a specific reason for why Griffith was leaving the company.

"Effective on April 23, 2010," reads the filing, "Mr. Griffith resigned from his role as President and Chief Executive Officer of Activision Publishing. Mr. Griffith will remain Vice-Chairman of Activision Blizzard and will continue to report directly to the Chief Executive Officer of Activision Blizzard [Bobby Kotick]."

Activision has so far not responded to requests for comment.

When the Infinity Ward event first unfolded, I'd published excerpts from an internal memo from Griffith to Activision employees discussing the future rule of Infinity Ward, minus its fired leadership.

"Jason West and Vince Zampella are no longer with Infinity Ward," explained Griffith in the Memo, obtained by G4 in early March. "Infinity Ward remains central to Call of Duty's future and we rely on the combined talent, expertise and leadership of the team there for its success."

Griffith will remain involved with Activision as vice chairman, continuing to participate in board of directors and chairman of the board meetings and "other internal strategy sessions."

"Approximately thirty-five others" have left Call of Duty series creator and Modern Warfare 2 developer Infinity Ward since owner Activision fired the studio's two lead executives, Activision Blizzard CEO Bobby Kotick said today, with more expected to follow.

"It is likely a few more people will leave as well," Kotick explained during a conference call with investors. "Many of these people have been recruited by other studios because of how talented they are. We are obviously disappointed about this, and we wish we could have convinced some of these incredibly talented people to stay."

"The team at Infinity Ward today is comprised of some of the most talented people in the video game industry," he added. "They are an incredibly well-respected group who are motivated and obviously extraordinarily capable."

An internal email from a rival Electronic Arts executive, released today as part of a court filing, seems to boast about getting one of the developers of Modern Warfare 2 to delay add-ons for the game. A delay could have prevented the add-on from interfering with the release of the shooter's biggest competitor.



"A couple months ago, I asked Vince to hold back their map pack until after we launched. (He owes me one,) " starts the email written by the rival developer, apparently referring to Modern Warfare 2 developer Vince Zampella. "Given that they've already made a billion, he was cool with that, obviously (Activision CEO ) Kotick took it as being belligerent."

Reached for comment earlier today, Electronic Arts declined to comment for this story.

The email was written by Lincoln Hershberger, senior director of global marketing at Electronic Arts' DICE studio to a slew of other EA executives including Frank Gibeau, the company's head of EA Games. The note was dated March 2, the day DICE's Battlefield Bad Company 2 hit stores and 28 days before the "Stimulus Pack" map pack for Modern Warfare 2 went on sale for the Xbox 360.

Former Infinity Ward members Jason Ward and Vince Zampella have been given permission to go forward with theirlawsuit against Activision. Hollywood Reporter gives word that a Los Angeles Superior Court judge approved a trial detailing the controversy surrounding the release of Modern Warfare 2. This doesn't mean a ruling in their favor, however; merely that the case has enough merit to go to court. The trial is likely to begin later this year or early next year.

This is just the latest bit of drama surrounding the case. Activision filed a counter-suit against West and Zampella, thenadded EA to the suit to the tune of $400 million, alleging that the company was complicit. This claim was later supported byincriminating e-mails, which EA spokespersons shrugged off as a joke. More recently, West and Zampella added fraud charges for assurances of creative control and job security.

Shacknews has contacted West and Zampella's attorney on the case for official comment, and we will report back with any response.

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.

Activision Blizzard Inc. is seeking to delay a trial against the creators of its blockbuster game “Call of Duty: Modern Warfare 2” to bring in a new lead lawyer as the possible damages it faces have ballooned to $1 billion.

Activision asked California Superior Court Judge Elihu Berle in Los Angeles in a filing yesterday to postpone the May 29 trial date for 30 days so that its new attorney, Beth Wilkinson, can get prepared. A hearing on that request is scheduled for today.

Activision, the biggest U.S. publisher of video games, said in a May 9 regulatory filing that the damages claim of Jason West and Vince Zampella, the developers of “Modern Warfare 2,” who the company fired in 2010, has increased to more than $1 billion, from the $36 million the two sought in unpaid royalties when they first sued two years ago

Activision Blizzard and Electronic Arts settled claims over the game “Call of Duty: Modern Warfare 2.”

The companies said at a hearing today in California state court in Los Angeles that they will file a settlement agreement in court.

The damages pay-out sought by sacked Infinity Ward bosses Jason West and Vince Zampella has swollen to over $1 billion, according to the pair's former employees Activision.

The figure popped up in a recent SEC financial filing from the publisher, as spotted by Develop.

It notes that the sum originally sought was just $36 million, but doesn't specify why the number has risen so dramatically since.

Here's the text in full:

"After concluding an internal human resources inquiry into breaches of contract and insubordination by two senior employees at Infinity Ward, the Company terminated its employment of Jason West and Vince Zampella on March 1, 2010.

"On March 3, 2010, West and Zampella filed a complaint against the Company in Los Angeles Superior Court for breach of contract and wrongful termination, among other claims. In their complaint, West and Zampella alleged damages, including punitive damages, in excess of $36 million, an amount they have since significantly increased during discovery to over $1 billion, as well as declaratory relief.

"On April 9, 2010, the Company filed a cross complaint against West and Zampella, asserting claims for breach of contract and fiduciary duty, among other claims. The Company is seeking damages and declaratory relief."

The case is due to go in front of a Los Angeles judge on 29th May.

In related news, a report early today accused Activision of attempting to hack into Zampella and West's email around a year before they were eventually dismissed.

The two Modern Warfare creators signed a development a deal with EA soon after their departure from Activision. EA was subsequently dragged into the legal scuffle but has since settled out of court.

Activision Blizzard Announces Settlement Of Infinity Ward Litigation

SANTA MONICA, Calif., May 31, 2012 /PRNewswire/ -- Activision Blizzard, Inc. (Nasdaq: ATVI) today announced that all parties to the litigation have reached a settlement of the dispute, the terms of which are strictly confidential.

The company does not believe that the incremental one-time charges related to the settlement will result in a material impact on its GAAP or non-GAAP earnings per share outlook for the current quarter or the calendar year, due to stronger-than-expected operating performance in the current quarter.

About Activision Blizzard

Headquartered in Santa Monica, California, Activision Blizzard, Inc. is a leading online, PC, console, handheld and mobile game publisher worldwide with leading positions across key categories of interactive entertainment.

Activision Blizzard maintains operations in North America, Latin America, Europe, Australia, South Korea and China. More information about Activision Blizzard and our games can be found on the company's website, www.activisionblizzard.com.

Cautionary Note Regarding Forward-looking Statements: Information in this press release that involves Activision Blizzard's expectations, plans, intentions or strategies regarding the future, including statements about the company's earnings, are forward-looking statements that are not facts and involve a number of risks and uncertainties. Activision Blizzard generally uses words such as "outlook," "will," "could," "should," "would," "might," "to be," "plans," "believes," "may," "expects," "intends," "anticipates," "estimate," "future," "plan," "positioned," "potential," "project," "remain," "scheduled," "set to," "subject to," "upcoming" and similar expressions to identify forward-looking statements. Factors that could cause Activision Blizzard's actual future results to differ materially from those expressed in the forward-looking statements set forth in this release include, but are not limited to, sales levels of Activision Blizzard's titles, increasing concentration of titles, shifts in consumer spending trends, the impact of the current macroeconomic environment and market conditions within the video game industry, Activision Blizzard's ability to predict consumer preferences, including interest in specific genres such as first-person action and massively multiplayer online games and preferences among competing hardware platforms, the seasonal and cyclical nature of the interactive game market, changing business models including digital delivery of content, competition, including from used games and other forms of entertainment, possible declines in software pricing, product returns and price protection, product delays, adoption rate and availability of new hardware (including peripherals) and related software, rapid changes in technology and industry standards, litigation risks and associated costs, protection of proprietary rights, maintenance of relationships with key personnel, customers, licensees, licensors, vendors, and third-party developers, including the ability to attract, retain and develop key personnel and developers that can create high quality "hit" titles, counterparty risks relating to customers, licensees, licensors and manufacturers, domestic and international economic, financial and political conditions and policies, foreign exchange rates and tax rates, and the identification of suitable future acquisition opportunities and potential challenges associated with geographic expansion, and the other factors identified in the risk factors section of Activision Blizzard's most recent annual report on Form 10-K. The forward-looking statements in this release are based upon information available to Activision Blizzard as of the date of this release, and Activision Blizzard assumes no obligation to update any such forward-looking statements. Although these forward-looking statements are believed to be true when made, they may ultimately prove to be incorrect.

These statements are not guarantees of the future performance of Activision Blizzard and are subject to risks, uncertainties and other factors, some of which are beyond its control and may cause actual results to differ materially from current expectations.

SOURCE Activision Blizzard, Inc.

News Provided by Acquire Media