Shareholders Lose Court Battle Against Midway

October 27, 2009 -

A United States District Court judge has dismissed a lawsuit brought against Midway Games by a group of shareholders who had alleged that the company artificially inflated its stock by deceiving the public.

Filed by Joseph Zerger, “on behalf of himself and all others similarly situated,” the suit targeted Midway Games’ Steven Allison, James R. Boyle, Miguel Iribarren, Thomas Powell and David Zucker.

In a filing dated October 19, 2009, Northern District Illinois Eastern Division Judge David Coar ruled against the plaintiffs, stating:

Plaintiffs have failed to show that Defendants said or did anything more than publicly adopt a hopeful posture that its strategic plans would pay off. Such preening for the financial press is classic puffery. Even if these statements were not puffery, Plaintiffs cannot establish that they were false when made.

The plaintiffs had alleged that:

While the executives rushed to sell their Midway stock at the trumped-up prices their “scheme” temporarily sustained, the lead plaintiffs and other putative class members purchased it—and lost millions when the market eventually learned the truth.

Midway declared bankruptcy in February of this year.
 

|Image Via icanhascheezburger|


Comments

Re: Shareholders Lose Court Battle Against Midway

But releasing false information to the shareholders is a big no no. Corruption lives on. :(


-Your friendly video game lobbyist

Re: Shareholders Lose Court Battle Against Midway

But releasing false information to the shareholders is a big no no. Corruption lives on. :(


-Your friendly video game lobbyist

Re: Shareholders Lose Court Battle Against Midway

But guys, wouldn't it be so much nicer to play the stock market if you knew that if you lost out, you could always sue and get your money back?  It's win-win!

Re: Shareholders Lose Court Battle Against Midway

Regardless of whether the heads of Midway were pulling BS, it didnt take a rocket scientist to determine just how fucked the company was.  When a new MK game and a new IP (This is Vegas) are stated as the saviours of the company, its time to divest from the company.

Re: Shareholders Lose Court Battle Against Midway

"Puffery?"

Is that financial jargon?

Re: Shareholders Lose Court Battle Against Midway

It's actually legal jargon. It usually refers to a claim which inherently cannot be substantiated  (i.e., isn't either true or false). Most frequently encountered in advertising and trade law (e.g., "BMW. The Ultimate Driving Machine" or "Gillette. The Best a Man Can Get."). Because puffery generally isn't a verifiable claim, it can't be said that puffery is misleading and, therefore, it doesn't usually constitute a basis for liability. Unlike superlative claims, which can be verified (e.g., "Gillette Sensor. The Closest Shave a Man Can Get"). 

 
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Papa MidnightWith GTA5 (to date) failing to even provide indication of a PC release, I'm realising that this might be the first GTA game that I have not played (outside of Chinatown Wars) since the series inception.04/19/2014 - 8:14am
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Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
Andrew EisenI'm not keen on blind links. What is it?04/18/2014 - 3:45pm
Matthew Wilsonthis is worth a whatch https://www.youtube.com/watch?v=MyXcr6sDRtw&list=PL35FE5C4B157509C904/18/2014 - 3:43pm
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MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
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