| Company: | Midway Games Inc. |
| Ticker Symbol: | NYSE: MWY |
| Class Period:: | August 4, 2005 to May 24, 2006 |
| Date Filed: | Jul-07-07 |
| Lead Plaintiff Deadline: | Sep-05-07 |
| Court: | Northern District, IL |
| Allegations: |
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. (Nachrichten) ("Midway") (NYSE:MWY) common stock during the period between August 4, 2005 and May 24, 2006 (the "Class Period").
The complaint charges Midway and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Midway develops and publishes software for major video game systems.
The complaint alleges that 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. In response to this announcement, Midway's stock price fell to $7.39 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Midway and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Midway develops and publishes software for major video game systems.
The complaint alleges that 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. In response to this announcement, Midway's stock price fell to $7.39 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
