MINNEAPOLIS, Aug. 2, 2007 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Midway Games, Inc. ("Midway" or the "Company") (NYSE:MWY) publicly traded securities during the period August 4, 2005 through May 24, 2006 (the "Class Period).
If you are a member of the proposed Class, you may move the court to serve as a lead plaintiff for the Class on or before September 4, 2007. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that Midway 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, 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 purchased Midway Games, Inc. securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com) Charles H. Johnson & Associates 2599 Mississippi Street New Brighton, MN 55112 (651) 633-5685