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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MattsworknameOff topic, but, who heres playing Bloodborne, and if so, is it mercillesly murdering you every chance it gets?04/25/2015 - 7:35am
Matthew WilsonI think its a good article, and devs can take some lessons from life is strange.04/24/2015 - 10:24pm
Andrew EisenI tinyURL'd it. The world is safe!04/24/2015 - 10:23pm
Matthew Wilson@AE my bad there is nothing I can do about that.04/24/2015 - 10:21pm
Andrew EisenLooks like the spoiler is right there in the URL.04/24/2015 - 10:20pm
Matthew Wilsonhttp://tinyurl.com/ok9pf6b a interesting opinion piece on the life is strange episode 2, and a dark event that happens in it. full warning major spoilers.04/24/2015 - 10:11pm
Matthew Wilson@mech no just she, nor her co workers have not. she never said it is not real.04/24/2015 - 8:58pm
MechaCrashWas she saying "I haven't experienced it," or "I haven't experienced it therefore it does not exist"?04/24/2015 - 8:31pm
ZippyDSMleeoy the skyrim paid mod thing is going over well. My 2 lints, I would not mind if Skyrim had a full SDK and not a crappy lil editor....04/24/2015 - 6:46pm
Andrew EisenWell, that is indeed crappy and nonsensical.04/24/2015 - 3:45pm
Matthew Wilsonshe got attacked for saying that she personaly has not experienced the harassment some other female devs have, and she got acused of defending GG and ignoring harassment. she ended up getting dog piled because of it.04/24/2015 - 3:43pm
Andrew EisenFine but do you recall ANY details at all?04/24/2015 - 3:38pm
Matthew Wilsonit was several weeks ago now, and I will admit to not saving it.04/24/2015 - 3:36pm
Andrew EisenAttacked HOW and by WHOM for not writing off WHO as evil? Do you have a link or anything?04/24/2015 - 3:31pm
Matthew Wilsonthat is the whole point she was not attacked for saying anything. she was attacked for being willing to debate in the first place, and not just write them off as evil.04/24/2015 - 3:28pm
Andrew EisenI know there's not a lot of room in the Shout box but goodness you're being vague.04/24/2015 - 3:26pm
Andrew EisenGreat, but that STILL doesn't tell me what she said, why she was attacked (or what the attack was) or what "standard line" she's following. Details, man. Details!04/24/2015 - 3:25pm
Andrew EisenOr what the heck Nina White (someone else I've never heard of) is actually referring to.04/24/2015 - 3:24pm
Matthew Wilson@AE she is a game dev. she used to do stuff with hormanix and now works with https://outact.net/#!/?page_id=2 she will often engage and debate both side.04/24/2015 - 3:23pm
Andrew Eisen...following.04/24/2015 - 3:23pm
 

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