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Earlier today, it was revealed that Activision will pay out $42 million to 40 former employees of Infinity Ward. No, this is not a settlement in the lawsuit between Jason West and Vince Zampella.
This payout comes as Activision realized that instead of taking all 40 former employees to trial, they would rather just take care of them all at once and issue a blanket payment for lost wages. Chances are, if they went to trial for each employee, it would have run the company far more than the $42 million they paid out.
This payment includes 10% interest on top of the $22 million paid out for a promised first quarter launch bonus of past IW titles. The Group may still yet persue additional unpaid bonuses beyond the $42 million that was already paid out. In 2010, Isaacs said that Activision owed between $75 and $125 million. There are also unpaid profits of $54 million from 2009 and the possibility of punitive damages ranging anywhere from $75 million to $500 million.
Again, the lawsuit between Activision and West/Zampella is still slated to go forward. They were, at least to anybody's knowledge, not included in this payout. In a worst case scenario, Activision is in a position to lose a ton of money in these legal battles.
(via)
This payout comes as Activision realized that instead of taking all 40 former employees to trial, they would rather just take care of them all at once and issue a blanket payment for lost wages. Chances are, if they went to trial for each employee, it would have run the company far more than the $42 million they paid out.
Reached for comment this evening, Bruce Isaacs, attorney for the Infinity Ward Employee Group, confirmed that the payment was made today, but called it a "cynical attempt to look good before the jury trial."
"I can confirm for you that it happened today," he told Polygon. "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."
"I can confirm for you that it happened today," he told Polygon. "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."
This payment includes 10% interest on top of the $22 million paid out for a promised first quarter launch bonus of past IW titles. The Group may still yet persue additional unpaid bonuses beyond the $42 million that was already paid out. In 2010, Isaacs said that Activision owed between $75 and $125 million. There are also unpaid profits of $54 million from 2009 and the possibility of punitive damages ranging anywhere from $75 million to $500 million.
Again, the lawsuit between Activision and West/Zampella is still slated to go forward. They were, at least to anybody's knowledge, not included in this payout. In a worst case scenario, Activision is in a position to lose a ton of money in these legal battles.
(via)