Activision (Nasdaq:ATVI) Files $400 Million Lawsuit Against EA (Nasdaq:ERTS)

Electronic Arts (Nasdaq:ERTS) is the recipient of a $400 million lawsuit from Activision Over the alleged poaching of two former executives still under contract with them.

The two employees, Vince Zampella and Jason West, filed a $36 million lawsuit against Activision last March, saying they were fired because the company didn't want to continue paying them royalties on the lucrative "Call of Duty" franchise.

Activision claims Electronic Arts lured the two away from them via Creative Artists Agency. The two have formed a new company named Respawn Entertainment, which will develop games exclusively for Electronic Arts.

The new company hired 40 people away from Activision, generating even more hostility.

Claims against Electronic Arts are they deliberately interfered with the existing contracts of West and Zampella.

Activision says the two never did any direct work on "Black Op," which is poised to become one of the top selling games of all time, and was already in seventh place after less than one month: November. The game was released November 9, and sales remain brisk.

According to Activision, Black Ops has already surpassed $1 billion in sales.

Activision closed Tuesday at $12.23, up 0.02, or 0.16 percent. Electronic Arts closed at $15.93, up $0.08, or 0.50 percent.