HARTFORD, Conn., July 9, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons who purchased the publicly traded securities of Midway Games, Inc. ("Midway") (NYSE:MWY) between August 4, 2005 and May 24, 2006, inclusive (the "Class Period"). Also included are those who received Midway through its acquisitions of Pitbull Syndicate or Midway Studios Australia.
The Complaint charges Midway, a developer and publisher of major video game systems, and certain of its officers and directors violated federal securities laws. During the Class Period, defendants assured investors that Midway would perform as expected in the fourth quarter of 2005. In fact, the Company did not perform as expected because defendants had decided to lay off 8% of the Company's workforce and engage in costly restructuring. Before the full costs of these decisions were made public, however, defendants were able to sell off over $14 million of their shares on the open market within three weeks of one another. On May 24, 2006, defendants announced that they would have to sell $75 million in convertible notes that would be highly dilutive to current shareholders in order to raise cash. On this news, Midway's stock price fell to $7.39 per share.
If you are a member of the class, you may, no later than September 4, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.