Company Town

The business behind the show

« Previous Post | Company Town Home | Next Post »

Just when Redstone thought he was out, Midway pulls him back in

May 13, 2009 |  5:12 pm
Sumner Redstone and Shari Redstone
Sumner Redstone (center) with daughter Shari Redstone (right) and granddaughter Kimberlee Korff in 2003. Credit: Kevin Winters / Getty Images

As if losing over $500 million on his investments in the company over the years wasn't enough, Viacom and CBS mogul Sumner Redstone is now on the receiving end of a lawsuit from the creditors of bankrupt video game publisher Midway Games. Alex Pham has the story on the LA Times Tech blog:

Creditors of Midway Games have filed a lawsuit against the Chicago company's board members and former majority owner Sumner Redstone, alleging that his sale of Midway in November was a "fraudulent transfer" that benefited the media mogul while pushing Midway into bankruptcy.

The suit, filed Monday in federal bankruptcy court, claims that Redstone sold his 87% stake to investor Mark E. Thomas for a mere $100,000 in order to register $700 million in tax losses to collect a "massive tax refund."

Read the whole thing here.