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Midway Creditors sue Redstones, Mark Thomas over leaving Midway “insolvent”

Tuesday, 12th May 2009 23:39 GMT By Stephany Nunneley

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Creditors are suing several parties involved in the recent bankruptcy and original sale of Midway, including Mark Thomas, and Sumner Redstone along with his daughter Shari and his holding company, National Amusements.

The lawsuit stems from what the creditors called a “breach of fiduciary duty, corporate waste and unjust enrichment” pertaining to the financial crisis within the company. The suit states that the current situation “arises out of a series of disastrous and ill-advised financial transactions that largely occurred during 2008.”

According to a 29-page document filed by the creditors, Midway’s board turned a blind eye to the sale of the company and wasteful spending by having “either approved of the transactions or, upon learning of them, looked the other way — taking no steps to investigate and unwind them.”

Redstone’s sale of Midway to Mark Thomas for $100,000 was described in the document as not only a shady deal, but as nothing more than a “massive tax refund” to Redstone which left Midway “insolvent” since 2007.

Loads of accusations there.

Gamsutra’s got the rest of the details. Go have a look.

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1 Comments

  1. blackdreamhunk

    I hate some publishers they don’t belong in pc gaming mid way and epic games is one of them. They love high production costs so much they consoles so much then good for them. They got what they love soooo much, that is No money!!!!

    Game devs and publishers who support pc gaming is making money hands over fist!!!

    you will never ever get games like this on console, it’s also the reason consoles are doom to fail. Even apple said that about the console gaming Industry.

    sins of the solor empire
    http://www.youtube.com/watch?v=xY-NSNhgydY
    http://www.youtube.com/watch?v=nI4hMaeAgDM
    X3
    http://www.youtube.com/watch?v=c2BYxSivFZE
    Aquria
    http://www.youtube.com/watch?v=YqY9mDOw-UI
    eve online
    http://www.youtube.com/watch?v=q62Wk3xWH8g&feature=PlayList&p=56B4ED2FB6
    age of pirates 2
    http://www.youtube.com/watch?v=8lJyaNbrahM

    Mid way is just like interplay they love console so much they are gone. I am sure fallout 3 would have saved interplay if they knew who their fans are. I am sure UT3 would have saved mid way too, but I guess they don’t care about their fans that made them. So they pay the price.

    Take a good look THQ never ever forgot about their fans and dawn of war made millions. Game devs such as anet,blizzard,THQ,vavle,bio-ware etc are popular for a reason, maybe because they respect their fans and love them right back!!!!!

    yea the media and some publisher want pc gaming dead and treat their fans like garage. Then they expect to make a ton of money!!!!! funny part is pc gaming and their game devs are making tons of moeny hands over fist in a ression. Everything in pc gaming is on fire in a ression.

    High production costs would have kill game devs, the ression only speed things up a bite. Even if there was no ression tons of game devs would have went bankuprt in the long run.

    No company is too big to fail and be brought to it’s kneels. How the mighty have fallen!!!!

    #1 6 years ago

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