Activision now faces a battle over unpaid royalties for Call Of Duty 4: Modern Warfare 2. Former Infinity Ward bosses Jason West and Vince Zampella have filed a lawsuit against the company, and now the same is being done by the Infinity Ward group.

The developers claim that Activision violated California labor codes and withheld bonuses after the success of Modern Warfare 2. They say this was done to force the employees stick with the company till Warfare 3 was complete. The group is seeking $54 million in unpaid bonuses and an additional $75 million to $500 million in damages.

 
In response to the lawsuit, Activision said that it retains the discretion to determine the amount and the schedule of bonus payments for MW2 and has acted in accord with its rights and the law at all times. However presently it seems that Activision has acted badly. The suit alleges that Activision breached a contract by not paying the entirety of the royalties due to employees after the success of Modern Warfare 2.
 

Soon after the lawsuit came up, Activision Publishing CEO and President Mike Griffith stepped down on his designation to  become vice chairman of the company’s board. Though the reasons for such an act are not confirmed but Janco Partners analyst Mike Hickey believe that Infinity Ward will likely be closed after the studio issues its next expansion pack for Modern Warfare 2, the blockbuster game that has generated more than $1.1 billion in revenue since November.