Shareholders tell Midway to ‘Get over here,’ attempt fatality [Update]
Posted in Class action, Fraud, Midway, New Complaint
A federal securities fraud suit filed in the United States District Court for the Northern District of Illinois alleges that Midway Games Inc., creators of Ms. Pac-Man and Mortal Kombat, misled their investors about the company’s financial condition and violated the Securities Exchange Act of 1934. The lawsuit, filed on behalf of shareholders who purchased stock between August 4, 2005 and May 24, 2006, alleges that Midway’s top officers and directors made false statements about Midway’s fourth quarter 2005 performance and sold off over $14 million worth of shares on the open market before announcing the decision to sell $75 million in convertible notes. This flood of notes diluted current shareholders’ stock and caused a 67% decline in share price.
In addition to Midway Games, Chief Executive Officer David Zucker, Chief Financial Officer Thomas Powell and numerous other executives were named in the suit. The suit is being handled by Amelia Newton of Chicago law firm Lasky & Rifkind.
[Update July 16, 2007] - This suit is now being taken over by Darren J. Check and Richard A. Maniskas of Schiffrin Barroway Topaz & Kessler.
For more info, see: The Chicago Tribune
