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Activision and Infinity Ward settle out of court

West, Zampella and studio staff settlements agreed upon, but kept confidential.

The long-running legal dispute between Activision and former Infinity Ward heads Vince Zampella and Jason West has been resolved - the day before the case was due in court.

"All parties have reached a settlement in the dispute, the terms of which are strictly confidential,” said West and Zampella's attorney, Robert Schwartz.

West and Zampella sought over $1 billion from Activision, filing a lawsuit against the publisher in 2010 citing breach of contract and wrongful dismissal.

The pair subsequently added two counts of fraud to the case, but these were dismissed by the court.

Last month, Activision paid out $42 million (£26.1 million) to Infinity Ward staff in a seperate action - though Bruce Isaacs, attorney for the employees made clear at the time that this was not the full amount being sought.

He has today confirmed that the case has been settled in full for the employee group.

Activision also settled with Electronic Arts last month after it accused the rival publisher of courting West and Zampella.

“Activision’s refusal to pay their talent and attempt to blame EA were absurd," said Electronic Arts in a statement. "This settlement is a vindication of Vince and Jason, and the right of creative artists to collect the rewards due for their hard work.”

While Activision stated that it didn't foresee any payout having a negative effect on the company's share price, it will want to keep the details of the payout close to its chest for the sake of investors. The publisher's stock has been in slow but steady decline throughout May in the lead up to the court date, closing at $11.74 yesterday - a fall of 17¢ from Wednesday, and 98¢ since the beginning of last month).

Source: LA Times