SAN DIEGO–LAWFUEL – US Law Newswire –Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach Coughlin”) (http://www.lerachlaw.com/cases/midwaygames/) today announced that a class action has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Midway Games Inc. (“Midway”) (NYSE:MWY) common stock during the period between August 4, 2005 and May 24, 2006 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at [email protected] If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/midwaygames/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Midway and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Midway develops and publishes software for major video game systems.
The complaint alleges that during the Class Period, defendants assured investors that Midway would perform as expected in the fourth quarter of 2005. In fact, the Company did not perform as expected because defendants had decided to lay off 8% of the Company’s workforce and engage in costly restructuring. Before the full costs of these decisions were made public, however, defendants were able to sell off over $14 million of their shares on the open market within three weeks of one another. On May 24, 2006, defendants announced that they would have to sell $75 million in convertible notes that would be highly dilutive to current shareholders in order to raise cash. In response to this announcement, Midway’s stock price fell to $7.39 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Midway common stock during the Class Period (the “Class”). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $45 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.