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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MattsworknameAndrew and EZK help me pull back a bit , still working on it05/22/2015 - 7:06am
ConsterI think IP is the only person here who doesn't think IP needs to dial it back several levels.05/22/2015 - 6:14am
Mattsworknamehttp://www.foxnews.com/politics/2015/05/22/fec-backs-off-flirtation-with-regulating-internet/05/22/2015 - 1:34am
MattsworknameWell, on another subject, Saw this, and while I know it's fox news, thuoght I should share it05/22/2015 - 1:34am
MechaCrashYeah, even I think IP needs to dial it back.05/22/2015 - 12:35am
Mattsworknamesays05/21/2015 - 11:17pm
MattsworknameRE doc, everyone has a tendancy to let emotion get ahead of them, especially in an annoymous forum like the web. We have have those moments. Ip however has nothing but those moments. it's why I stopped responding to him, regardless of what he thinks or05/21/2015 - 11:17pm
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Andrew EisenMock? Ridicule? No, we're talking about serious threats and abuse, not people being cheeky or mean. Big difference.05/21/2015 - 8:42pm
DocMelonheadIn fact I see both mocks and ridicule between both the GamerGate Supporters and GamerGate Critics.05/21/2015 - 8:41pm
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Mattsworknamegoth I think all media news outlets have that disclaimer05/21/2015 - 8:39pm
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Goth_SkunkAnd re BBC vs Rockstar: Ahh. I missed that. Woops!05/21/2015 - 8:33pm
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MechaCrashWell, can't blame him for not expanding on it and missing stories here. Sealioning people demanding proof of claims and then calling them liars when they provide it is busy work!05/21/2015 - 8:20pm
Andrew EisenRe: Mary Sue - Uh, why exactly? Re: Rockstar - Yep, we reported that earlier today.05/21/2015 - 8:12pm
 

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