Midway Creditors Cry Fraud Against Redstone

Law360, New York (May 13, 2009, 12:00 AM EDT) -- Midway Games Inc.'s official committee of unsecured creditors is taking action against former controlling shareholder and media mogul Sumner Redstone, alleging that a 2008 transaction in which Redstone swapped an 87 percent stake in the bankrupt video game maker for $100,000 constitutes fraud.

Midway's unsecured creditors committee filed an adversary complaint Tuesday against Redstone, the investor's privately controlled company National Amusements Inc., members of Midway's board and current Midway controlling shareholder Mark E. Thomas, leveling various claims against the defendants, including fraudulent transfer, corporate waste, breach...
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