The video game publisher did not divulge any details of the settlement and said the terms were confidential.

Activision fired Jason West and Vincent Zampella in March, 2010. The men had led the Infinity Ward studio - developer the original "Call of Duty" game and several others in the series - which was acquired by Activision in 2003.

After leaving Activision, West and Zampella formed a new development studio, Respawn Entertainment, and signed an exclusive publishing and distribution deal with Activision's arch rival, Electronic Arts Inc.

West and Zampella also sued Activision over their dismissal and sought $36 million in royalty payments and damages. Activision counter-sued, seeking $400 million in actual and punitive damages from EA and the former executives.

Two weeks ago, Activision settled its suit against Electronic Arts in which it accused the former executives of breaking their employment agreements not to develop games for other publishers. The suit between Activision and its former executives was settled before it was supposed to be taken up in a Los Angeles state court on Friday.

Activision executives declined to comment. Bobby Schwartz, an attorney for the former Activision executives, also declined to comment.

"Activision's refusal to pay their talent and attempt to blame EA were absurd. This settlement is a vindication of Vince and Jason and the right of creative artists to collect the rewards due for their hard work," EA said in a statement.

The case in Superior Court of the State of California, Los Angeles County is Jason West v Activision Publishing, No. SC107041.

(Reporting By Malathi Nayak; editing by Andre Grenon)

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