Infinity Ward staff sues Activision for up to $500 million

The fallout between Infinity Ward and Activision has taken yet another dramatic turn, as a large number of IW employees—both current and former—have filed a class-action lawsuit against the publisher for between $75 million and $125 million in unpaid bonuses.

The report comes via G4tv.com, which has obtained a copy of the lawsuit being filed by 38 people referring to themselves as the Infinity Ward Employee Group. The suit alleges that Activision breached a contract by not paying the entirety of the royalties due to employees after the success of Modern Warfare 2.

According to the report, Activision has paid $28 million in royalties so far, but still owes $54 million for 2009, as well as other bonuses based on the first quarter of 2010. The group is also seeking $75 million to $500 million in punitive damages.

“Activision owes my clients approximately $75 million to $125 million dollars,” attorney Bruce Isaacs told G4. “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 [are] entitled to their money. Activision has no right to withhold their money—our money.”

Employees continue to leave

Up until now, a total of 26 employees have left Infinity Ward, which means that at least 12 members of the Employee Group are still with the studio. Previously, Activision spokesman Dan Amrich said that employees who leave the studio would be giving up their bonus, and that “the more people that leave, the bigger the bonus gets for the people who stay.” In light of allegations that the money was being held as a kind of ransom to get employees to stay, those statements look rather damning.

Many of the departed Infinity Ward developers have found a new home at Respawn Entertainment.

Activision, for its part, believes it has done nothing wrong. “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,” the company responded in a statement.