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Noriega -- convicted of drug trafficking, money laundering and killing political opponents -- is serving out a prison sentence in Panama, where he was extradited in 2011.
He argues in the lawsuit that his portrayal "as a kidnapper, murderer and enemy of the state" in the 2012 video game damaged his reputation. The company used his image and name in order to make money, the lawsuit says, therefore he's entitled to a share of the profits.
"Plaintiff was portrayed as an antagonist as the culprit of numerous fictional heinous crimes, creating the false impression that defendants are authorized to use plaintiff's image and likeness," the lawsuit says.
In 2012, the company said "Call of Duty: Black Ops II" had netted more than $1 billion in sales worldwide in its first months on the market.
The video game includes historical footage and several real-life characters in Cold War scenarios, including Oliver North.
But while North did his own voice over for the game and acted as an adviser, Noriega said in Tuesday's lawsuit that he wasn't consulted -- or compensated -- for the use of his likeness.