SAN DIEGO, June 8, 2007 (PRIME NEWSWIRE) -- If you are a Midway Games Inc. ("Midway" or the "Company") (NYSE:MWY) shareholder and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Brian J. Robbins of Robbins Umeda & Fink, LLP at 800/350-6003 or 619/525-3990, or via e-mail at brobbins@ruflaw.com.
Midway develops and publishes software for major video game systems. The complaint charges certain of Midway's officers and directors with breaches of fiduciary duties, waste of corporate assets and unjust enrichment that occurred between April 2005 and the present and that have caused substantial losses to Midway and other damages, such as to its reputation and goodwill.
The complaint alleges that Midway's former and current directors and officers directed the Company to issue improper statements, including press releases and Securities and Exchange Commission filings, to its shareholders and the public that did not accurately portray the Company's expected performance for its fourth fiscal quarter 2005. Specifically, the complaint alleges that these statements failed to adequately disclose, among other things, a planned lay off of 8% of the Company's workforce, a costly restructuring and cash flow problems.
The complaint also alleges that the improper statements artificially inflated Midway's stock price and that certain Midway insiders took advantage of the inflation and sold over $16 million of their personally held Midway shares before Midway announced the disappointing fourth quarter 2005 financial results. The complaint alleges that the release of these results, however, resulted in a $900 million decline in Midway's market capitalization.
Plaintiff seeks to recover damages and institute corporate governance reforms on behalf of Midway. The plaintiff is represented by Robbins Umeda & Fink, LLP, which has extensive experience in pursuing derivative actions on behalf of publicly traded companies such as Midway.
Robbins Umeda & Fink, LLP represents institutional and individual investors, retirees, employees, consumers, and small businesses in shareholder derivative actions, securities fraud class actions, merger and acquisition class actions, consumer fraud class actions, privacy class actions, antitrust class actions, and insurance class actions. For more information about Robbins Umeda & Fink, LLP, please see the firm's website (http://www.ruflaw.com).
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.