GI.biz reports that Reflections founder Martin Edmondson has received over $4 million for his “unfair dismissal” by Atari some time ago. Scoop:

Financial documents released last week by Atari, as reported by Gamasutra, reveal that Edmondson filed suit the following March, alleging “constructive unfair dismissal as a result of Reflections alleged repudiatory breach of a contract of employment that necessitated Mr. Edmondson’s resignation.”

The documents state that Edmondson withdrew his claim last August after reaching a settlement agreement with Atari. The publisher agreed to issue Edmondson with 1,557,668 shares, valued at USD 2.1 million, plus a cash payment of USD 2.2 million.

It’s no secret that Atari has been in a dire position for some time now - the publisher reported a net loss of $5 million and has had its fair share of other bad news. However, the company’s CEO Bonnell, talking to MCV, rejected claims that the company was dying. He does admit that Atari is in the red and remarked that they might be looking into selling off some of their studios.

A quick rundown of their studios on MCV includes Reflections, known best for their work on the spectacularly abysmal Driver 3, who’s working on Driver 4; Melbourne House and Eden Studios, both of which are working on current and next-gen versions of Test Drive; Paradigm working on Stuntman 2 and Battlezone; and finally, the most popular of them all - Shiny which has worked on the universally panned Enter the Matrix and the better-received Path of Neo, both titles based on The Matrix movie trilogy.

Bonnell also said that the American branch of Atari may see some staff let go off - these staff are referred to as “redundancies”. In what can be termed as a followup, the company issued a press release announcing the implementation of its “corporate action plan.” The plan acts on cost control, disposes non-core assets and places a stronger emphasis on external development studios. Atari will also reduce its worldwide workforce by approximately 20%.