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Friday, June 01, 2012
Activision Settles Suit With Game Developers

Activision Blizzard, Inc. announced that it has settled a lawsuit with two former executives over payment and royalties for developing game titles.

The company did not disclose the terms of the settlement.

Last year, Activision fired Jason West and Vincent Zampella, the game developers of the original "Call of Duty" game and several others in the series.

After leaving Activision, West and Zampella formed a new development studio, Respawn Entertainment, and signed an exclusive publishing and distribution deal with Activision's rival, Electronic Arts.

West and Zampella also sued Activision over their dismissal and sought $36 million in royalty payments and damages. Activision counter-sued, seeking $400 million in actual and punitive damages from EA and the former executives.

Last month Activision settled its suit against Electronic Arts in which it accused the former executives of breaking their employment agreements not to develop games for other publishers.

Activision added that incremental one-time charges related to the settlement would result not 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.

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