Cliff notes version:Bob_McMillan said:I thought Infinity Ward was defunct?
Activision decided it didn't want to pay contractual bonuses to Infinity Ward's senior staff, so right after the release of Modern Warfare 2 it fired the two studio heads on entirely ludicrous grounds (specifically, disagreeing with Mr Kotick and having dinner at E3 with a guy they used to work for who still worked for EA) and began withholding everyone else's bonuses and pay. By May of 2010 half of Infinity Ward's staff were gone (most of them ending up at Respawn to make Titanfall).
Naturally, lawsuits followed, many of them.
The legal clusterfuck that followed rumbled for two years and saw Activision resort to shady (Suing EA to stall for time, smear campaigns etc) and flat out illegal (Surveillance, hacking of private emails) methods. It came out over time that Activision had been planning the whole thing well in advance, the day before this all went to open court Activision settled.
Nobody knows the details of the settlement exactly, but West and Zampella were reportedly 'smiling' in the court room during the case withdrawal. Given how utterly shady Activision had been seen to be it's not unreasonable to assume they got most of what they wanted.
But Infinity Ward still exists, just with very, very few of the staff that developed CoD 1,2, 4 and MW2 still in the building, which should have been obvious when Ghosts rolled around.