May 31, 2012 / 10:15 PM / in 6 years

UPDATE 1-Activision, video game developers settle suit

SAN FRANCISCO, May 31 (Reuters) - Activision Blizzard Inc has settled a lawsuit with its two former executives over payment and royalties for developing top titles such as “Call of Duty,” the company said on Thursday.

The video game publisher did not divulge any details of the settlement and said that the terms are strictly confidential.

Activision fired Jason West and Vincent Zampella in March, 2010. The men, who led the Infinity Ward studio, subsequently filed a lawsuit against Activision, seeking $36 million in royalty payments and damages.

Infinity Ward, which was acquired by Activision in 2003, developed 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 arch rival Electronic Arts.

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

Two weeks ago, Activision settled its suit against Electronic Arts in which its accused its former executives of breaking their employment agreements to develop games for EA. Neither company disclosed details of the settlement.

The suit between Activision and its former executives was settled before the suit was supposed to be taken up in a Los Angeles state court on Friday.

Activision executives declined to comment. An attorney for the two former Activision executives could not be reached immediately for comment on Thursday.

The case in Superior Court of the State of California, Los Angeles County is Jason West v Activision Publishing, No. SC107041.

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