UPDATE: Activision issued an email reply to G4, stating the following: “Activision believes the action is without merit. Activision retains the discretion to determine the amount and the schedule of bonus payments for MW2 and has acted consistent with its rights and the law at all times. We look forward to getting judicial confirmation that our position is right.”

—–

IW-Gate thickened this morning as a group of 38 people, dubbed the “Infinity Ward Employee Group”, filed suit against publisher Activision in Los Angeles Superior Court, claiming (among other things) breach of contract, violation of California’s Labor Code and more.

To quote G4′s Patrick Klepek (who you may recall originally broke the story that began IW-Gate), “The other shoe has now dropped.” I couldn’t think of a more apt way to put it myself.

“Activision owes my clients approximately $75 million to $125 million dollars. Activision has withheld most of the money to force many of my people to stay, some against their will, so that they would finish the delivery of Modern Warfare 3. That is not what they wanted to do,” said Bruce Issacs of IWEG’s attorneys, Wyman & Issacs LLP.

The plaintiffs, a mix of currently employed and recently departed IW staff, are looking for not only the $54  million due in past unpaid bonuses from the delivery and success of Modern Warfare 2, but also somewhere between $75-500 million in additional punitive damages against the publishing giant, due to various claims.

Hit the link for the full list of details on the lawsuit, which we won’t repeat verbatim here. Still, this looks like it’s going to get a lot worse before it gets better. What do you all think? Let us know below.

[Via: G4.com]