Shareholders File Class Action Suits Against Game Developer Midway

Authored by Mark Hefflinger on September 29, 2003 - 9:53am.

Chicago -- A number of shareholder class action lawsuits have been filed against video game developer Midway Games, alleging the company's share price was inflated due to misleading statements made by the company. The charges include not informing shareholders of "material disruptions" at Midway that made the company miss product release dates, which led to decreased revenue and inaccurate revenue projections being provided to shareholders. Chicago-based Midway reported earnings of $5 million for the third quarter, far below its earlier projections of between $7-$11 million, and at the same time announced the departure of CEO Neil D. Nicastro -- two events that resulted in a considerable drop in the company's share price.
http://biz.yahoo.com/prnews/030926/daf029_1.html
http://biz.yahoo.com/prnews/030926/phf042_1.html
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