Midway has been hit with multiple class action lawsuits this week stemming from the company's stock performance between 2005 and 2006.
Three separate class-action suits have been filed, but the complaints are similar in each. The lawsuits allege that Midway failed to disclose and misrepresented material adverse facts related to the company's performance, its intent to engage in a restructuring program, and its need to secure debt financing.
One of the class-action lawsuits further alleges that company insiders profited by selling nearly USD 14 million worth of shares to investors at "artificially inflated prices."
Following a series of financial disclosures, Midway's stock lost over 67 per cent of its value between December 2005 and May 2006.
The lawsuits were filed by Schiffrin Barroway Topaz and Kessler, Dreier LLP, and Schatz Nobel Izard P.C. Midway has not yet responded.