Is it finally game over for the shareholders of Midway Games? Midway, the maker of such fine entertainment as Mortal Kombat, filed for bankruptcy last February. Its assets were later sold to Warner Brothers, but not before the company’s former shareholders sued its former executives for securities fraud. Now, however, it looks like their claims are in mortal distress: Last week, Chicago federal district court judge David Coar granted the defendants’ motion to dismiss.

The plaintiffs, represented by Coughlin Stoia Geller Rudman & Robbins, alleged that the former Midway executives artificially pumped up the company’s stock price through a variety of misrepresentations and omissions about Midway’s financial condition. They complained, for example, that Midway belatedly announced $13 million in restructuring charges as a result of closing down a gaming company it acquired. To show scienter, the plaintiffs also threw in allegations of insider trading.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]