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Former Midway Execs Off The Hook In Investor Suit
by Kris Graft
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October 27, 2009
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A judge on Monday cleared former Midway executives of accusations from investors, who claimed the defunct company's leaders deceived the public about the former Mortal Kombat publisher's financial standing.
A U.S. District Court judge said that distraught investors who lost millions in Midway investments failed to show that the former leaders of the game publisher misled the public while they profited from selling off their own shares, according to the Chicago Sun-Times.
The former Midway executives who the court cleared of wrongdoing include CEO David Zucker, CFO Thomas, CFO Thomas Powell, CMO Steven Allison, controller James Boyle, and publishing SVP Miguel Iribarren.
The judge said the investor who filed the complaint didn't show that the former executives "said or did anything more than publicly adopt a hopeful posture that its strategic plans would pay off." The judge added that the shareholders did not adequately allege the "direct liability" of the former execs.
Midway filed for bankruptcy in February this year, after majority shareholder and media mogul Sumner Redstone sold his stock in the company. In July, Warner Bros. purchased Midway's assets for $33 million, Midway subsequently closed down its Chicago headquarters.
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