Redstone, Midway Board Dodge Fiduciary Breach Claims

Law360, New York (February 1, 2010, 7:55 PM EST) -- A federal judge has killed breach of fiduciary duty claims brought by Midway Games Inc.'s creditors committee against members of its board of directors, saying the directors aren't liable for the video game maker's "deepening insolvency" before it filed for Chapter 11.

In the U.S. Bankruptcy Court for the District of Delaware on Friday, Judge Kevin Gross dismissed the breach of fiduciary duty claims brought against the directors by the official committee of unsecured creditors.

The creditors' complaint, which was filed against former controlling shareholder and...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.