The case between Activision and ex-Infinity Ward members Vince Zampella and Jason West is expected to go to trial.
The latest development in the lawsuit – which was first filed in March 2010 – came when a Los Angeles Superior Court judge ruled that there are facts to support the pair’s allegations again Activision, according to The Hollywood Reporter.
West and Zampella have claimed that Activision terminating their contract early last year cost them more than $125m in royalties following the success of Call of Duty: Modern Warfare 2.
The developers also claimed Activision had promised them creative autonomy and escalating royalty payments on any future games they create.
Activision is countersuing Zampella, West and rival publisher EA, accusing the trio of conspiring to “hijack Activision’s assets”. Allegations against EA claim the firm attempted to get Zampella and West to join its ranks, even though they were still under contract.
Barring any settlement, both cases are expected to reach trial by the end of the year or in early 2012.