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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Matthew Wilsonhttp://www.forbes.com/sites/insertcoin/2015/02/28/the-world-is-nintendos-if-only-theyd-take-it/ I think this is a interesting op-ed, but yeah it kind of is stating the obvious.02/28/2015 - 2:52pm
prh99The government probably doesn't need an app, but I was think more along the lines of a company that was going to sell the collected info. “If you're not paying for the product, you are the product” sometimes even if you pay.02/28/2015 - 1:50pm
E. Zachary KnightWhat better way for the government to keep track of you than to get you to install an app that lets you insult the government.02/28/2015 - 11:03am
prh99No, but I looked it up and it's basically spyware. Their privacy policy says their apps tracks among other things your location and browsing habits via cookies.02/28/2015 - 8:20am
Ryan RardinHas anyone here heard of an app called iCitizen? It's basically Yelp for politicians.02/28/2015 - 5:16am
Andrew EisenAh, not linked in the way you (and everyone else) want and expect. That's true.02/27/2015 - 10:06pm
Matthew Wilsonthey are not linked in a way that tracks purchases though. the fact that they have to send a code for the other system shows that they are not linked in the way it counts.02/27/2015 - 9:39pm
Andrew EisenAccounts are already linked. Have been for quite a while. Also, Mario vs. Donkey Kong was announced as a cross-buy title during last January's Nintendo Direct.02/27/2015 - 9:25pm
Matthew Wilsonhttp://www.vg247.com/20…/…/27/olli-olli-3ds-wii-u-cross-buy/ I wounder if this is a sign that Nintendo may finally link accounts across the 3ds/wiiu in the near future.02/27/2015 - 9:18pm
prh99http://www.romanoriginals.co.uk/invt/70931?colour=Blue The dress does comes in white and blue but both have black lace and a sheer back top, I don't see gold or brown. 02/27/2015 - 8:54pm
ZippyDSMleeDungeons was a so bad so good game to me so I been keeping up with its sequel which will more of a Dungeon Keeper clone. As for pre order out of 7 preorders I was not burnt by 2... Add my contempt of most of modern game design.Ya I have all kinds of hurt.02/27/2015 - 8:40pm
MechaTama31I don't even want to know...02/27/2015 - 8:22pm
ZippyDSMleeFun? I can do fun…. I think LOL. Dungeons 2 is on preorder but not via steam... >> Hell I am breaking all kinds of personal butthurt rules to even THINK about pre order...02/27/2015 - 8:12pm
E. Zachary KnightHad some fun discussions about that dumb dress on Facebook. I opened the original picture in GIMP and sampled the colors and determined them to be Blue and Gold. People still say I am wrong.02/27/2015 - 7:41pm
ConsterTime for something completely different: #teamwhiteandgoldllama!02/27/2015 - 7:27pm
ZippyDSMleeAndrew Eisen: I'll try. ^^02/27/2015 - 5:40pm
ZippyDSMlee james_fudge: That’s what I been doing damnit!! *bites your leg*. LOL All but a couple posts have been written in word 2010. This has had my full attention so I’ve been able to keep some consistency up today which is nice a shame it’s still gibberish ><02/27/2015 - 5:38pm
Andrew EisenLike I said, if you want to have a discussion or get a question answered, I'm more than happy to oblige. All I ask in return is you have enough respect for everyone else to take the time to compose a readable post.02/27/2015 - 5:35pm
ZippyDSMleeI suppose it would be poor of me to say this but thank you for taking the time to reply to my questions, it does help me every now and then to discuss things and update or refine my opinion on stuff.. I do miss the forums here….02/27/2015 - 5:31pm
james_fudgeYou could run it through Word :) It's not that hard.02/27/2015 - 5:30pm
 

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