If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Midway Creditors sue Redstones, Mark Thomas over leaving Midway "insolvent"

midwaylogo

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.

About the Author

Stephany Nunneley avatar

Stephany Nunneley

News Editor

Half-blind/half-dyslexic, bad typist, wine enthusiast, humanitarian, intellectual savant, idiot savior, lover of all things nonsensical, animal hoarder and highly sarcastic.

Become a VG247 supporter and get your first month for £1!

Get your first month for £1 (normally £3.99) when you buy a VG247 subscription. Enjoy ad-free browsing, merch discounts, our monthly letter from the editor, and show your support with a supporter-exclusive comment flair!

See more information

Comments

More News

Latest Articles

VG247 logo

Buy our t-shirts, yeah

They're far more stylish than your average video game website tat.

VG247 Merch