Update: Activision and Electronic Arts have settled their legal differences in this case, which means that EA will not be a part of the West and Zampella lawsuit. The West vs. Activision suit is not settled. Apologies for the confusing headline earlier.
Activision and EA has announced the case between Activision and EA over the creators of Modern Warfare 2 (Jason West and Vince Zampella) has settled. The companies said at a hearing today in California state court in Los Angeles that they will file a settlement agreement in court. The terms of the coming settlement were not disclosed. The lawsuit between West and Zampella and other former Infinity Ward employees vs. Activision is still going forward.
In a brief, joint statement, the companies said: "Activision and EA have agreed to put this matter behind them."
Los Angeles County Superior Court Judge Elihu Berle today denied Activision's motion to postpone the case for an additional thirty days. The trial will begin as scheduled on May 29.
Activision said in a May 9 regulatory filing that the damages claim of West and Zampella, the creators of Modern Warfare 2, has increased to more than $1 billion, from the $36 million the two sought in unpaid royalties when they first sued two years ago.
The settlement comes on the heels of the release of some documents that are decidedly unflattering to Activision. According to the filings, in the summer 2009, six months before the release of Modern Warfare 2, Thomas Fenady was asked to hack into the email accounts and phones of West and Zampella and "dig up dirt" but "don't get caught doing it." The directive reportedly came from Bobby Kotick, the head of Activision.
The secret mission was dubbed "Operation Icebreaker," and was apparently intended as a way of firing West and Zampella. Strategies to access West and Zampella's information included the discussion of staging a fake fire drill or fumigation to get them away from their computers long enough to copy information. These tactics were never carried out.