OT: Activision targets EA in $400 million lawsuit

[GTHobbes]

I'm not a COD player so this is one lawsuit against EA that I don't have much interest in, but it will be interesting to follow nonetheless.

"12/21/2010 - Updated 10:30 PM ET

LOS ANGELES (AP) — Activision Blizzard Inc., the video game maker behind the smash-hit shooter "Call of Duty: Black Ops," on Tuesday added a new target in its lawsuit against two former executives: rival Electronic Arts Inc. Activision also put a price tag on its claim for the first time, seeking $400 million.

The amended complaint filed in the Los Angeles Superior Court is the latest salvo in a legal shootout that began when Jason West and Vince Zampella sued Activision for $36 million in March, claiming Activision fired them to avoid paying royalties for their work on the "Call of Duty" franchise.

Activision, owned by France's Vivendi SA, claims EA lured the men away, starting as early as July 2009, despite their having two years left on their contract, in part by using talent agency Creative Artists Agency as an intermediary. It alleges EA dispatched a private jet to Southern California to shuttle West and Zampella to a secret meeting at the home of EA's chief executive John Riccitiello near San Francisco in August 2009.

The two later formed Respawn Entertainment, hiring about 40 employees away from Activision. Respawn said in April it will create games exclusively for release by EA.

In the complaint, Activision alleges that EA intentionally interfered with contracts, engaged in unfair competition and aided and abetted breaches of fiduciary duty by the executives.

EA, which is based in Redwood City, did not immediately respond to a request for comment.

West and Zampella did not directly work on the "Black Ops" game, which Activision said Tuesday had exceeded $1 billion in global sales. The men's unit at Activision, Infinity Ward, works on roughly every other game in the "Call of Duty" franchise with Activision subsidiary Treyarch.

Shares of Activision, which is based in Santa Monica, rose 10 cents to $12.33 in after-hours trading on Tuesday, after closing up 2 cents at $12.23. Electronic Arts shares were unchanged in extended trading after closing up 8 cents at $15.93."

http://stocks.usatoday.com/custom/usato ... 7f00a0f57e}

[Danimal]

What's illegal about "luring people away" from their place of employment? I get head hunter calls all the time, or I used to before this economy. Now if the two guys had a non-compete I can see going after them but why EA? If EA is the Devil, the Activision is the devil's right hand man and I have a hard time buying anything they say as true.

[GTHobbes]

What's illegal about "luring people away" from their place of employment?

Why EA? They're the deep pocket and a huge competitor, that's why. If Activision can prove these "executives" breached their fiduciary duty, they may be able to catch EA in the same net with the aiding and abetting/conspiracy claim. I don't know anything about the facts beyond what was stated, but if what is stated is all true, then it probably wouldn't be too hard to support a tortious interference with contract claim either. Get past summary judgment and see what a jury thinks. What does Activision really have to lose by bringing EA in, other than nothing?

[GTHobbes]

IGN's got more of the story, and a response from EA's PR:

"Activision today filed a proposed first amended cross-complaint alleging rival Electronic Arts conspired with former Infinity Ward executives Jason West and Vince Zampella to "derail Activision's Call of Duty franchise, disrupt its Infinity Ward development studio, and inflict serious harm on the company."

In April, Activision originally countersued West and Zampella for breach of contract, claiming the two executives met with one of the publisher's closest competitor who was not identified. This amended complaint now claims, after supplying substantial evidence, that this competitor was Electronic Arts, whom Activision says "intentionally interfered with contracts, engaged in unfair competition, and aided and abetted breaches of fiduciary duty by the executives."

If the court approves this proposed amended complaint, Electronic Arts would be added as a cross-defendant in the West/Zampella countersuit.

The complaint alleges current Electronic Arts COO John Schappert covertly called Jason West and urged West and Zampella to meet with EA CEO John Riccitiello despite knowing that both developers were under contract with Activision for two more years. West and Zampella were allegedly instructed to continue discussions with Riccitiello on e-mail threads separate from their Infinity Ward accounts.

Riccitiello also allegedly met with Seamus Blackley of Creative Artists Agency, a talent agency, to court West and Zampella from Activision. In August 2009, the suit claims Zampella agreed to meet with Blackley, and through an e-mail following their meeting the next day wrote: "I'm stoked about your options. JR cooks a mean BBQ. I think we could accomplish some interesting chaos."

The complaint states,"Activision is informed and believes that the negotiations between Electronic Arts and West and Zampella were structured with the design and the expectation that West and Zampella would 'spin out' from Activision and would take significant numbers of key Infinity Ward employees with them to set up their own independent company so that Electronic Arts could make another run at competing with Activision."

Highlighting examples of West and Zampella's continued insubordinate conduct at Infinity Ward, Activision later says the two developers were "small-minded executives almost obsessed by jealousy of other developers and the thought that another Activision game or studio might share their spotlight." Activision says West and Zampella were "motivated by envy and personal greed" and even went so far as to intentionally release game trailers for Modern Warfare 2 the same day Treyarch posted promotion videos for downloadable content for Call of Duty: World at War.

Here is a transcript of text messages between Jason West and an unnamed Infinity Ward employee:
The employee texted West that "treyarch released their mp dlc video." West responded: "Super nice? We release our video? Crush and destroy with our video." The employee answered: "We already did. And . . . we already did." West's following comment: "Nice." Thus, West's own words reveal his intentional strategy to "crush and destroy" his fellow developers at Treyarch.
Activision also believes that West and Zampella attempted to block other Infinity Ward employees from received financial incentives that would "undercut West and Zampella's efforts to lure those employees away (in violation of their own employment contracts) when the time came to spin off."

The suit alleges, "In order to make it unlikely that these employees of Activision's Infinity Ward studio would remain with Activision, West and Zampella attempted to block those employees from receiving significant equity grants and/or other compensation, suggesting instead that Activision provide the additional compensation to West and Zampella alone, not to the many valued employees to whom Activision was offering this extra compensation."

The complaint also states that West and Zampella refused to sign standard exit documents representing that they had returned all Activision property, including computer code. Electronic Arts then looked to extract confidential information from the two, including information about the "Modern Warfare 2 marketing plans and how Electronic Arts could make a 'COD Killer,' a game to rival Call of Duty. This was a blatant attempt to get an unfair advantage for EA's Call of Duty rival, Battlefield: Bad Company."

Activision is seeking $400 million in actual and punitive damages from EA and West and Zampella, including profits Activision would have made but for EA's interference, costs incurred in rebuilding the affected studio, and damages suffered as a result of delays and disruptions.

IGN has reached out to Electronic Arts for comment. The court will decide in January if the publisher will be added to the existing lawsuit. The trial date between Jason West, Vince Zampella, and the Infinity Ward Employee Group vs. Activision is currently set for May 23, 2011.

Update: Electronic Arts VP of Corporate Communications Jeff Brown sent IGN the follow statement in response to the complaint:
This is a PR play filled with pettiness and deliberate misdirection. Activision wants to hide the fact that they have no credible response to the claim of two artists who were fired and now just want to get paid for their work."

http://ps3.ign.com/articles/114/1141432p1.html

[GTHobbes]

Wow -- looking back at the EA PR response -- I can't believe EA still has Jeff Brown in that position. He's the same guy who famously said back in 2004:

"We killed ‘em on football. They could give that thing away for free, scotch-taped to a ham sandwich and we’re still going to beat them,” Jeff Brown, EA Vice President on the subject of ESPN NFL 2K5 retailing at a low, low $19.99.

http://alphavilleherald.com/2004/12/jef ... _vs_j.html

What an arrogant tool.

[Danimal]

You never really answered my question and it's more because I want to know then it being EA. But what's illegal about trying to lure someone from a place of employment to another place of employment. It happens everyday and I don't see companies being sued.

[GTHobbes]

You never really answered my question and it's more because I want to know then it being EA. But what's illegal about trying to lure someone from a place of employment to another place of employment. It happens everyday and I don't see companies being sued.

Here are the elements of a claim for tortious interference with contract under California law, along with quotes from a few cases:

"The elements which a plaintiff must plead to state the cause of action for intentional interference with contractual relations are (1) a valid contract between plaintiff and a third party; (2) defendant's knowledge of this contract; (3) defendant's intentional acts designed to induce a breach or disruption of the contractual relationship; (4) actual breach or disruption of the contractual relationship; and (5) resulting damage." (Pacific Gas & Electric Co. v. Bear Stearns & Co. (1990) 50 Cal.3d 1118, 1126 [270 Cal.Rptr. 1, 791 P.2d 587], internal citations omitted.).

"Because interference with an existing contract receives greater solicitude than does interference with prospective economic advantage, it is not necessary that the defendant's conduct be wrongful apart from the interference with the contract itself." (Quelimane Co. v. Stewart Title Guaranty Co. (1998) 19 Cal.4th 26, 55 [77 Cal.Rptr.2d 709, 960 P.2d 513], internal citations omitted.)

"nterference with an at-will contract is actionable interference with the contractual relationship, on the theory that a contract 'at the will of the parties, respectively, does not make it one at the will of others.' " (Pacific Gas & Electric Co., supra, 50 Cal.3d at p. 1127, internal citations and quotations omitted.)

[DivotMaker]

Shocking...another thread started by "you know who" reveling in bad news for EA......

[GTHobbes]

Shocking...another thread started by "you know who" reveling in bad news for EA......

Sorry that you and other EA employees don't like it, but what can I say -- with this and the big class certification news from today, Christmas came early for me this year.

[Aristo]

Shocking...another thread started by "you know who" reveling in bad news for EA......

The best part is his inability to articulate why EA is bad in these cases. I mean, other than having deep pockets. but he has no problem suckling up to Sony, Take Two, or anyone else he thinnks is going to be his David to EA's Goliath.

This case has ZERO impact on gamers. ZERO. NADA. ZIP.

Activision and EA can pee all over each other, but in the end, they will still keep making games.

Oh, and GT will keep furiously working that pecker of his every time he sees EA's name in print. Which would be no big deal, except that he feels it is necessary to spluge all over DSP.

[Rodster]

The best part is his inability to articulate why EA is bad in these cases. I mean, other than having deep pockets. but he has no problem suckling up to Sony, Take Two, or anyone else he thinnks is going to be his David to EA's Goliath.

This case has ZERO impact on gamers. ZERO. NADA. ZIP.

Activision and EA can pee all over each other, but in the end, they will still keep making games.

Oh, and GT will keep furiously working that pecker of his every time he sees EA's name in print. Which would be no big deal, except that he feels it is necessary to spluge all over DSP.

That's the part I don't understand either. I mean i'm all for competition but it's another to root for a company to go out of business while cheering on Electronic Giants like Sony who is just as cutthroat as Microsoft and EA.

[DivotMaker]

Shocking...another thread started by "you know who" reveling in bad news for EA......

Sorry that you and other EA employees don't like it, but what can I say -- with this and the big class certification news from today, Christmas came early for me this year.

You want to start this again? Did I personally attack you? I don't think so, but yet you seem to think you can attack me for no reason whatsoever. I think you know what you can do with your "EA employee" comment.....

Take it to PM's or STFU.

[GTHobbes]

You want to start this again? Did I personally attack you? I don't think so, but yet you seem to think you can attack me for no reason whatsoever. I think you know what you can do with your "EA employee" comment.....

Take it to PM's or STFU.

You should know by now that your snide remarks get under my skin the same way that my posting negative news about EA gets under your skin. What value did your original post add to this thread? Let me answer for you: None, really.

[DivotMaker]

You want to start this again? Did I personally attack you? I don't think so, but yet you seem to think you can attack me for no reason whatsoever. I think you know what you can do with your "EA employee" comment.....

Take it to PM's or STFU.

You should know by now that your snide remarks get under my skin the same way that my posting negative news about EA gets under your skin. What value did your original post add to this thread? Let me answer for you: None, really.

You should know by now that YOUR anti-EA posts piss off FAR more people here than my "snide remarks" piss anyone off. In light of your post history and your hard-on for EA, I am pretty sure I am not the only one who is tired of your anti-EA crusade here.

[GTHobbes]

You want to start this again? Did I personally attack you? I don't think so, but yet you seem to think you can attack me for no reason whatsoever. I think you know what you can do with your "EA employee" comment.....

Take it to PM's or STFU.

You should know by now that your snide remarks get under my skin the same way that my posting negative news about EA gets under your skin. What value did your original post add to this thread? Let me answer for you: None, really.

You should know by now that YOUR anti-EA posts piss off FAR more people here than my "snide remarks" piss anyone off. In light of your post history and your hard-on for EA, I am pretty sure I am not the only one who is tired of your anti-EA crusade here.

Yes...your, Danimal's, and Aristo's displeasure with my EA posts have been long noted. Believe it or not, I get more PM's from people here telling me they're tired of you guys washing EA's balls than I get saying they're tired of my s***. Come to think of it, I've never gotten a single PM telling me to let up on EA. When I do, I'll be sure to let you, Danimal and Aristo know. Frankly, I'm not sure anybody else cares (except that we keep rehashing the same stuff everytime any negative EA news comes out, which fortunately or unfortunately is pretty often these days).

[DivotMaker]

Yes...your, Danimal's, and Aristo's displeasure with my EA posts have been long noted. Believe it or not, I get more PM's from people here telling me they're tired of you guys washing EA's balls than I get saying they're tired of my s***. Come to think of it, I've never gotten a single PM telling me to let up on EA. When I do, I'll be sure to let you, Danimal and Aristo know. Frankly, I'm not sure anybody else cares (except that we keep rehashing the same stuff everytime any negative EA news comes out, which fortunately or unfortunately is pretty often these days).

Sorry, but my BS meter just pegged out.

[Aristo]

Yes...your, Danimal's, and Aristo's displeasure with my EA posts have been long noted. Believe it or not, I get more PM's from people here telling me they're tired of you guys washing EA's balls than I get saying they're tired of my s***. Come to think of it, I've never gotten a single PM telling me to let up on EA. When I do, I'll be sure to let you, Danimal and Aristo know. Frankly, I'm not sure anybody else cares (except that we keep rehashing the same stuff everytime any negative EA news comes out, which fortunately or unfortunately is pretty often these days).

Sorry, but my BS meter just pegged out.

I don't even want him to let up on EA. I was so pissed when EA got the exclusive license for the NFL that I didn't buy any EA products for years. But after awhile, I grew up. Then I decided I was best off supporting good products, and not buying bad ones. But I wasn't buying Madden long before 2K5. I had opted out with FootballPro on the PC and then 2K on the Dreamcast and Xbox.

GT's posts are stupid and annoying on their own. You don't have to have a horse in the race (and if you do, you are a moron) to see that GT pulls a lot crap out of butt, and misinterprets stories in order to dogpile EA. It's so disingenuous and belongs on NeoGAF, not here.

What really got me irritated was his insistence that improvements to Madden meant that it would be more like Backbreaker. And for the love of God, I don't want 2K using Backbreaker when they start making football games again. It's like GT wants to stomp all over my hope for a quality football game from 2K by having to thrust his Backbreaker love all over it.

[GTHobbes]

What really got me irritated was his insistence that improvements to Madden meant that it would be more like Backbreaker. And for the love of God, I don't want 2K using Backbreaker when they start making football games again. It's like GT wants to stomp all over my hope for a quality football game from 2K by having to thrust his Backbreaker love all over it.

Huh?

I used to think 2k played the most realistic game of football. A full 6 years later, I feel like Backbreaker -- at least online -- has finally taken over that title. I would hope 2k will incorporate some of BB's best elements when 2k finally gets back into the football game making business, but even if they don't, who cares? I've got plenty of room in my life for more than 1 football game and would undoubtedly go back to buying (and enjoying) more than 1 football game for sure.

I can assure you one thing -- if 2k and SCEA and others do get back to football, it ain't gonna take 'em 7 years and counting to figure out how to add in-game saves, realistic physics, working play action passes, real time presentation, or more than 1 camera angle to their games. I'll even go on record right now and predict that one or more of them will have a halftime and endgame show -- with highlights -- their first year back.

[Feanor]

Shocking...another thread started by "you know who" reveling in bad news for EA......

Sorry that you and other EA employees don't like it, but what can I say -- with this and the big class certification news from today, Christmas came early for me this year.

You want to start this again? Did I personally attack you? I don't think so, but yet you seem to think you can attack me for no reason whatsoever. I think you know what you can do with your "EA employee" comment.....

Take it to PM's or STFU.

You're the one who needs to STFU. Your comment was just as personal and rude as GT's - and yours came first.

Don't start throwing s*** around if you're going to whine like a b*tch when some of that s*** comes back at you.

[JRod]

There seems to be a similar war in the tech industry. I think Apple, Google and MS and employees moving around are being looked at by the SEC. Don't know if the two are in any way related.

[DivotMaker]

You're the one who needs to STFU. Your comment was just as personal and rude as GT's - and yours came first.

Don't start throwing s*** around if you're going to whine like a b*tch when some of that s*** comes back at you.

I just posted what most here are thinking besides you and gt. Up yours....

[GTHobbes]

You're the one who needs to STFU. Your comment was just as personal and rude as GT's - and yours came first.

Don't start throwing s*** around if you're going to whine like a b*tch when some of that s*** comes back at you.

I just posted what most here are thinking besides you and gt. Up yours....

Spoken with the confidence of a true EA Game Changer. Job well done, Divot.

[Wilk5280]

Wow guys, really? It really is getting old so how about you all take your little love fest to the PM's. Thx

[ScoopBrady]

This thread is being locked for obvoius reasons. GT, you are free to post on these forums and have an opinion but I ask that you stop creating threads that are baiting forum users. It is trolling and will not be tolerated. There's a huge line between expressing a personal opinion about a company and trolling a forum.

That being said, the same guys seem to bite every time he casts his line. Guys, seriously, if you want the behavior to go away, ignore the behavior. It really is that simple.

Lastly, this is the second time that GT has mentioned receiving numerous PM's of support. Would those users please PM me showing that same support? It would be helpful in the moderation of the forums to know that there are some supporters out there. Last time I asked this nobody stepped forward. This time, please do.

[Jared]

First off, sorry about the delay in responding everyone. I've been on the road the last two days in order to reach my Christmas vacation destination.

GT - you're taking a break from the forums. This post here was filled with ad hominem's against Divot which are clearly unnecessary and clearly done just to get under his skin. I've given you a warning about that multiple times and have been MORE THAN FAIR in giving you chances. But you can't seem to discuss EA without needing to take cheap shots against forum users. I've given enough warnings, so now you're banned. I'll lift it when I see fit - but it definitely won't be until (at least) after the holidays.