Del. bankruptcy judge dismisses breach of duty claims against Midway Games directors

Judge dismisses claims against Midway directors

DOVER, Del. — A Delaware bankruptcy judge has dismissed claims brought by Midway Games’ creditors committee against former directors and media mogul Sumner Redstone.

The judge last week dismissed claims alleging that the directors, Redstone, and his National Amusements holding company breached their fiduciary duties to Midway.

While chastising the defendants for overseeing the ruin of Midway, the judge said they were able to hide behind the protections of Delaware’s corporation law.

The creditors claimed that the defendants engaged in self-serving deals in 2008 that left the company saddled with debt owed to National Amusements.

Midway, maker of the “Mortal Kombat” video games, sought bankruptcy protection last year, citing accelerated debt obligations stemming from Redstone’s sale of his majority stake in late 2008 for just $100,000.