Midway Creditors Sue Redstones, Former Board Members Over Sale of Company

Creditors to bankrupt Mortal Kombat house Midway Games filed suit yesterday against several parties, including former Midway majority stakeholder Sumner Redstone, his holding company National Amusements, investor Mark Thomas and former Midway chair Shari Redstone over the November 2008 sale of the company. The suit also names former members of Midway's board.

The 29-page suit, obtained by Gamasutra, accuses specific defendants of a number of wrongdoings, including breach of fiduciary duty, corporate waste and unjust enrichment.

While Midway's undoing took place over the course of the past several years (Midway hasn't posted an annual profit since 1999), the creditors' complaint says that yesterday's action "arises out of a series of disastrous and ill-advised financial transactions that largely occurred during 2008."

Those actions allegedly benefited Sumner Redstone and Thomas "to the detriment of Midway."

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Elven63810d ago

Interesting, this could greatly work in Midway's favor if they win.