MWY Midway Games

NEW YORK, July 11 /PRNewswire/ -- Dreier LLP (http://www.dreierllp.com/) announces that a class action lawsuit was commenced in the United States District Court for the Northern District of Illinois, on behalf of purchasers of the common stock of Midway Games Inc. ("Midway" or the "Company") (NYSE:MWY) during the period August 4, 2005 through May 24, 2006, inclusive (the "Class Period"). The complaint alleges violations of the federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934. If you purchased Midway common stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before September 4, 2007 if you wish to serve as a lead plaintiff. Lead plaintiffs must meet certain legal requirements. If you have acquired Midway common stock and want to discuss your legal rights, please contact Daniel B. Scotti () of Dreier LLP at 800-952-8897. Class members may retain counsel of their choice and move the Court to serve as a lead plaintiff, or may choose to do nothing and remain absent class members. Midway engages in the development and publishing of interactive entertainment software for the videogame market. The Complaint alleges that defendants assured investors that Midway would achieve its revenue projections for the fourth quarter of 2005 and for fiscal year 2005, even though defendants had already decided to layoff 8% of the Company's personnel and to engage in costly restructuring. During the Class Period, company insiders profited by selling $14 million of their shares to investors at artificially inflated prices. On December 14, 2005, Midway announced it would have to record $13 million in costs as a result of Company restructuring. In reaction to this news, Midway's stock dropped 10% to close at $20.97 per share. On February 23, 2006, the company increased this cost projection, causing the stock to decline 9% to close at $9.94 per share. Finally, on May 24, 2006, Midway shocked investors by announcing it would have to raise cash by selling $75 million in convertible notes that would be highly dilutive to current shareholders. In reaction to this news, shares of the Company's stock declined over 17% to close at $7.39. Dreier LLP's Class Action Litigation Group has vast experience representing domestic and foreign institutional and individual investors in securities and other class actions throughout the country. The partners who head Dreier LLP's Class Action Litigation Group have successfully prosecuted securities fraud class actions in a wide variety of industries and have played a significant role in cases that have resulted in some of the largest securities class action settlements. Prior results do not guarantee a similar outcome. Background on Dreier LLP Dreier LLP was founded in 1996 by Marc Dreier as a more responsive and innovative alternative to traditional "large-firm" lawyering. Dreier LLP represents a wide range of institutional, entrepreneurial and individual clients in diverse sectors of financial, industrial and service-oriented markets. The firm's principal practices are commercial litigation, class action litigation, real estate, bankruptcy and corporate reorganization, employment, corporate and securities, entertainment, intellectual property, matrimonial and tax. Dreier LLP's Los Angeles affiliate, Dreier Stein & Kahan LLP, has its principal practice in entertainment and commercial litigation and corporate transactions. The firm's affiliate Schlesinger Gannon & Lazetera LLP has an extensive practice in the area of trusts and estates law. Pitta & Dreier LLP is an affiliate, which specializes in labor law, and Pitta, Bishop, Del Giorno & Dreier LLP specializes in government relations. In the 10 years since its founding, Dreier LLP, with its affiliate members, has grown to nearly 200 attorneys, with its principal office at 499 Park Avenue in Manhattan, and additional offices in Los Angeles; Santa Monica, California; Albany, New York; and Stamford, Connecticut. DATASOURCE: Dreier LLP CONTACT: Dreier LLP, +1-800-952-8897, Web site: http://www.dreierllp.com/

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