Something went wrong. Try again later

Giant Bomb News

178 Comments

Call of Duty Trial Isn't Happening, Parties Settle [UPDATED]

Details on the settlement aren't being released, either.

No Caption Provided

UPDATE: Activision has issued a press release about the settlement, and while it doesn't include much that we didn't already know, it does mention the settlement will "not have a material impact" on the company's bottom line.

In other words: we probably won't end up finding out very much from Activision's SEC filings.

"The company does not believe that the incremental one-time charges related to the settlement will result 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."

--

The epic showdown in the courts between Activision, former Infinity Ward leaders Jason West and Vince Zampella, and nearly 40 employees who left after shipping Call of Duty: Modern Warfare 2 won't be happening.

Polygon reporter Mike McWhertor and LA Times reporter Ben Fritz have been attending the pre-trial shenanigans in Los Angeles, and both are reporting a settlement has been reached.

The trial had been scheduled to start this week. Details on the settlement will not be released.

According to Fritz, West was seen smiling in the courtroom as the news was announced.

Activision had previously disclosed it had set aside one billion dollars for the case, if the outcome went against Activision in the worst possible way. It's unclear if Activision will have to disclose any part of the settlement in the future as part of being a publicly traded company. The settlement between Activision and Electronic Arts has also been kept under wraps.

I'm really bummed. Think of all the court documents related to lunches I could have looked up!

Patrick Klepek on Google+

178 Comments

Avatar image for tadthuggish
TadThuggish

1073

Forum Posts

334

Wiki Points

0

Followers

Reviews: 2

User Lists: 41

Edited By TadThuggish

booooooooooooooooooooooooooo

Avatar image for shaanyboi
Shaanyboi

1804

Forum Posts

3224

Wiki Points

0

Followers

Reviews: 1

User Lists: 5

Edited By Shaanyboi

BOOOOO!!!!! WE PAID FOR BLOOOOOOD!!!!

Avatar image for pow1149
pow1149

26

Forum Posts

17

Wiki Points

0

Followers

Reviews: 1

User Lists: 3

Edited By pow1149

Awww, lame.

Avatar image for jackel2072
Jackel2072

2510

Forum Posts

370

Wiki Points

0

Followers

Reviews: 0

User Lists: 11

Edited By Jackel2072

I'm really kinda disappointed. I was really looking forward to this trial and all the crazy things I'm sure would of came out of it. I'm going to bet activison lost more then a billon on this one.

Avatar image for big_jon
big_jon

6533

Forum Posts

2539

Wiki Points

0

Followers

Reviews: 2

User Lists: 18

Edited By big_jon

Pussy shit.

Avatar image for shtinky
shtinky

1247

Forum Posts

22

Wiki Points

0

Followers

Reviews: 0

User Lists: 3

Edited By shtinky

Aw, and you had your frocks all planned for those court trials you couldn't go to. And all the tea parties with the girls, where you'd gossip over the days proceedings, have all been squandered :(

Avatar image for microshock
microshock

355

Forum Posts

259

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By microshock

@JRock3x8 said:

can you imagine how activision would have come out of this looking? someone must have finally slapped some sense into Bobby Kotick and said "look, no one is ever going to buy an activision product again if we go to trial."

How would a trial do anything to stop people from buying COD?

Avatar image for jrock3x8
JRock3x8

327

Forum Posts

0

Wiki Points

0

Followers

Reviews: 2

User Lists: 0

Edited By JRock3x8

@Microshock said:

@JRock3x8 said:

can you imagine how activision would have come out of this looking? someone must have finally slapped some sense into Bobby Kotick and said "look, no one is ever going to buy an activision product again if we go to trial."

How would a trial do anything to stop people from buying COD?

well if they are killing children in broad daylight...oh wait - you said COD, yah nevermind you're right.

Avatar image for nightriff
nightriff

7248

Forum Posts

1467

Wiki Points

0

Followers

Reviews: 4

User Lists: 7

Edited By nightriff

DAMN! This was a trial I was looking foreword too. Looks like Activision has shit to hide if they are willing to settle

Avatar image for bcjohnnie
bcjohnnie

459

Forum Posts

643

Wiki Points

0

Followers

Reviews: 0

User Lists: 5

Edited By bcjohnnie

Pretty sure that information releases like that Bungie stuff that came out last week were a big part of why they ended up settling. West & Zampella's lawyers probably gambled on the fact that Activision did not want to spill the beans on more projects like that, and sooo much more of those would come out at trial.

Plus, companies almost always settle. No matter how much malice there seems to be, a company makes a business decision that settling is better than the consequences of trial.

'Tis a bummer though. I don't have any special love for either party, but it would have been fun to see how this played out in court.

Avatar image for martin_blank
Zatoichi_Sanjuro

955

Forum Posts

601

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Zatoichi_Sanjuro

If the settlement involved West/Zampella retaining the rights to future set Modern Warfare games... won't that come out anyway? Or does the settlement merely indicate a cash only deal?

According to Fritz, West was seen smiling in the courtroom as the news was announced.

No Caption Provided
Avatar image for nathanstack
NathanStack

717

Forum Posts

3506

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By NathanStack

sadtrombone.wav

I really wanted to see how this was going to pay out in court.

Avatar image for tracert
tracert

8

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By tracert

Good to see the ex Infinity Ward people getting what they are owed. They created one of the most successful properties in game history. Over a billion dollars in sales on MW2. Everyone at that studio should have been treated like kings by Activision, instead they get shit on. Talk about killing the goose that lays the golden egg.

Now that they have some fuck you money it's going to be real interesting to see what Respawn comes out with next. Exciting times we live in.

Avatar image for oobs
oobs

356

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By oobs

thats ashame..would have been interesting.

Avatar image for falconboom
Falconboom

23

Forum Posts

6

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By Falconboom

@oobs: I'd rather have it this way. Lets not waste the legal system's time if we can settle these kinds of problems without them.

Avatar image for hallgren
hallgren

36

Forum Posts

231

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By hallgren

@Zatoichi_Sanjuro: That is what I am most curious about as well. Especially since west and zampella and the rest of the crew created this IP, I would love to see them get those rights back!

Avatar image for deactivated-589cf9e3c287e
deactivated-589cf9e3c287e

1984

Forum Posts

887

Wiki Points

0

Followers

Reviews: 16

User Lists: 4

This is one of the best-case scenarios. Now what is Respawn working on?

Avatar image for warihay
Warihay

617

Forum Posts

354

Wiki Points

0

Followers

Reviews: 2

User Lists: 7

Edited By Warihay

Expected this but still disappointing.

Avatar image for arebuckle
Arebuckle

357

Forum Posts

216

Wiki Points

0

Followers

Reviews: 2

User Lists: 0

Edited By Arebuckle

Well. That was anti-climatic.

Avatar image for mjhealy
MjHealy

2009

Forum Posts

17432

Wiki Points

0

Followers

Reviews: 10

User Lists: 15

Edited By MjHealy

Somewhere, Bobby Kotick is sitting in an office chair and twisting his mustache...

"Yes! They fell for it. It is all part of my plan..."

Avatar image for minifig
Minifig

167

Forum Posts

14

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Minifig

@DeepSpace9MM: Try to find a job where someone likes him?

Avatar image for qwertywasd
Qwertywasd

6

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Qwertywasd

Patrick loves lunches

Avatar image for retrovirus
retrovirus

1669

Forum Posts

130

Wiki Points

0

Followers

Reviews: 0

User Lists: 17

Edited By retrovirus

Weak Activision! Weak!

Avatar image for squirrelnacho
squirrelnacho

462

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By squirrelnacho

I wonder what the new Respawn game will be like.

Avatar image for zleunamme
Zleunamme

1082

Forum Posts

1740

Wiki Points

0

Followers

Reviews: 0

User Lists: 9

Edited By Zleunamme

No fedora hat to the court room. It was cheaper for Activision to settle than have the thing drag out.

Avatar image for jasondesante
jasondesante

615

Forum Posts

2

Wiki Points

0

Followers

Reviews: 6

User Lists: 0

Edited By jasondesante

wtf. coolest trial like ever and they cancel it.

Avatar image for jayzilla
Jayzilla

2709

Forum Posts

18

Wiki Points

0

Followers

Reviews: 0

User Lists: 7

Edited By Jayzilla

Settlement=guilty of wrong doing. That settles it for me too. I will not be buying another ActiVision game until they right their ways. how could I buy a game from them knowing how they treat their employees and the lengths they would go to to screw their employees over? Answer: I can't, and neither should you.

Avatar image for zaxex
Zaxex

629

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 17

Edited By Zaxex

Would they have paid out if they were in the right? I suppose business and ethics aren't the same thing, and whatever cost the least is what they would have chosen.

So long as the ex-Infinity Ward guys land on their feet and get to keep making games I'm happy. I'm sure no one expected this to be the end of Call of Duty or anything. It seems fitting that the result benefits the ex-Infinity Ward guys without punishing the current Call of Duty developers, just taking some of their plentiful profit I assume.

Avatar image for adoggz
adoggz

2081

Forum Posts

165

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By adoggz

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

Avatar image for icecreamjones
Icecreamjones

428

Forum Posts

392

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By Icecreamjones

The note to shareholders there definitely makes me think :It's a fucking lot of money.

Avatar image for liquidus
Liquidus

993

Forum Posts

29

Wiki Points

0

Followers

Reviews: 0

User Lists: 10

Edited By Liquidus

"UPDATE: Activision has issued a press release about the settlement, and while it doesn't include much that we didn't already know, it does mention the settlement will "not have a material impact" on the company's bottom line."

So, Activision will continue to do everything in its power to make obscene profits annually, that's great to know.

Avatar image for beautifulspacecowboy
BeautifulSpaceCowboy

671

Forum Posts

1017

Wiki Points

0

Followers

Reviews: 1

User Lists: 6

I was looking forward to this case more than E3. Oh well. Sorry, Patrick!

Avatar image for paleeye
PaleEye

29

Forum Posts

7

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By PaleEye

Hmm.. Maybe West and Zampella could just buy EA and fix that ship

Avatar image for radioactivez0r
radioactivez0r

949

Forum Posts

95

Wiki Points

0

Followers

Reviews: 2

User Lists: 1

Edited By radioactivez0r

I wonder if the attorneys for the IW guys showed their hand and Activision blinked.

Avatar image for wumbo3000
wumbo3000

1324

Forum Posts

401

Wiki Points

0

Followers

Reviews: 7

User Lists: 38

Edited By wumbo3000

@adoggz said:

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

Avatar image for goodsheepdog
goodsheepdog

9

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By goodsheepdog
No Caption Provided
Avatar image for dawglet
Dawglet

317

Forum Posts

5

Wiki Points

0

Followers

Reviews: 0

User Lists: 12

Edited By Dawglet

BUT I WANT VIDEO GAME DRAMA GOD DAMMIT

Avatar image for spiritof
Spiritof

2471

Forum Posts

28754

Wiki Points

0

Followers

Reviews: 25

User Lists: 27

Edited By Spiritof

I was so looking forward to Pitfall Harry being called in as a material witness.

Avatar image for napalm
napalm

9227

Forum Posts

162

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By napalm

It's funny reading their Game Informer interview, and then seeing this. "A settlement won't work. We want to blow this shit open." *settlement agreed upon* Way to go, guys.

Avatar image for nephrahim
Nephrahim

1265

Forum Posts

3

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By Nephrahim

@wumbo3000 said:

@adoggz said:

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

Avatar image for beanpants
Beanpants

75

Forum Posts

5

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By Beanpants

They knew going public would reveal in great detail both a lot of their unethical behavior as well as publishing plans that are normally locked under watertight NDA's. We've already seen some of it with the Bungie reveals, so at full trial it would only get worse. They stood to lose even more money in both an inevitable loss in court as well as showing their hand to the world, and more importantly, to their competition.

Smart move by Activision to settle, despite telegraphing their wrongdoing by doing so.

Avatar image for vitor
vitor

3088

Forum Posts

51

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By vitor

EA's statement:

"Activision's refusal to pay their talent and attempt to blame EA were absurd. This settlement is a vindication of Vince and Jason, and the right of creative artists to collect the rewards due for their hard work."

Judging by the fact that Activision doesn't expect a loss due to increased quarter profits, it sounds like they paid out big time.

Avatar image for dcfox
dcfox

39

Forum Posts

25

Wiki Points

0

Followers

Reviews: 0

User Lists: 3

Edited By dcfox

@Jayzilla: I hope you also plan on not buying any products from Rockstar, EA, Microsoft, Amazon, Apple, Nintendo, Sony, HP, Intel etc. . .

Avatar image for hubrisranger
HubrisRanger

524

Forum Posts

412

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By HubrisRanger

So basically what I read from that is that all that Diablo money made a settlement more reasonable than trying to fight what was going to be a PR nightmare if nothing else in the court system.

Avatar image for poki3
Poki3

570

Forum Posts

1210

Wiki Points

0

Followers

Reviews: 1

User Lists: 12

Edited By Poki3

I kind of wanted to see the fireworks :/

Avatar image for wfolse1
wfolse1

478

Forum Posts

172

Wiki Points

0

Followers

Reviews: 0

User Lists: 4

Edited By wfolse1

"Activision had previously disclosed it had set aside one billion dollars for the case, if the outcome went against Activision in the worst possible way."

What does this sentence mean? They set aside money if the outcome went against them?

Avatar image for zigx
zigx

97

Forum Posts

86

Wiki Points

0

Followers

Reviews: 0

User Lists: 4

Edited By zigx

Now what am I going to do with all these boxes of "Trial of the Century-y-y-y-y-y-y-y-y-y-y-y" t-shirts I just ordered?

Avatar image for scratch
Scratch

647

Forum Posts

2520

Wiki Points

0

Followers

Reviews: 0

User Lists: 8

Edited By Scratch

You know I was kinda looking forward to coverage of this lawsuit, hoping it would turn into something huge. Don't get me wrong, both parties having settled out of court is certainly a good thing. We can now move on. Respawn can probably go ahead and announce their game now.

Avatar image for white
white

1697

Forum Posts

47

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By white

Did they (Activision) actually have to pay less than $1 billion?

Why won't it show up on the quarterly filings?

Avatar image for abendlaender
abendlaender

3100

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By abendlaender

@zigx said:

Now what am I going to do with all these boxes of "Trial of the Century-y-y-y-y-y-y-y-y-y-y-y" t-shirts I just ordered?

Eh, just wait a few weeks. Something else will pop up.