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

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.

 
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