Infinity Ward staff sues Activision for $500 million

A group of 38 present and former Infinity Ward employees has filed a class0action suit against Activision, claiming between $75 million-$150 million in unpaid bonuses, and asking for as much as half a billion dollars in damages.

<a href='http://meincmagazine.com/gaming/news/2010/04/infinity-ward-staff-sues-activision-for-500-million.ars'>Read the whole story</a>

 

[Traddy]

I obviously don't know the specifics of the employment contract but it is certainly common to have bonuses (in the real world, not the financial world where bonus has been used in place of "contractually bound deferred compensation") to have limitations, vesting schedules, and the like. They have been called "Golden Handcuffs" (in contrast to Golden Parachutes) and are *absolutely* about bribing the existing talent pool to stick around. I can only assume that Activision wrote normal sensible contracts with a bevy of lawyers, and therefore the suit will go nowhere in all likelihood.

This sounds totally stupid. This isn't about FUTURE bonuses, it's about bonuses that are past due for properties shipped and for monies made. If they wrote a contract that said "We will pay you bonuses in 2042 for money made in 2009", then you may have a point. But, then nobody would ever stay nor have any reasonable expectation of those bonuses.

They are holding back bonuses that are already due, not ones they promise in the future.

Hopefully the fines are even higher. Better hope I am not on the jury

 

[Traddy]

What do these developers do to get millions of dollars? Hey I'll submit my resume to Activision -- sounds like they have some more openings. I'm fine without that extra few million in bonuses. ;-)

It's not much of a stretch, it's probably a contract for employee bonuses based on revenues made. If the games generated about 1 billion in sales in 2009 and they are stating bonuses of 54 million, then the employee bonuses account for about 5% of revenues.

And, it's about working insane hours, and creating innovative, well designed and tested products that sell well, all within very tight time frames. Employee turnover kills that sort of effort, so bonuses are offered. And on top of all that, it's a proven product from a proven team.

5% of revenues for employee bonuses (for all employees entitled to the bonus) isn't at all out of line.

 

[Traddy]

With the refinements to their golden goose killing skills, I think Activision is ready to take on the big fish.

*Pops another bag of popcorn*

That's funny. IMO, though, if you actually read the case that Activision made against the IW leads, that goose was cooked before they stepped in. Those guys were acting like scum. If I had been the decider at Activision, I would've done the same thing.

Well, Activision actually has to prove it in court, not just say it.