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Activision had paid 40% of the royalties but withheld the remaining sum under the agreement that Infinity Ward complete development of Modern Warfare 3 by November 2011.

The suit described a "police state" at the firm, whereby Activision conducted secret "interrogations" of employees.

Activision said that it was "disappointed" when the lawsuit was originally filed back in March.

Many former employees of Infinity Ward have since joined Respawn Entertainment.

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