Gaming Companies Make Lousy Administrators
If there’s one thing that gaming companies excel at in the business sphere of the industry, it’s shady dealings and shoddy paperwork. Looks like two more major players have fallen on the wrong side of various authorities.
Just like Activision, Atari has shown that it can’t (or won’t) keep proper books to satisfy NASDAQ, and now it faces delisting. It appears that the French publisher has neglected to file its 2007 annual report, and it’s not even the first time. Last September Atari also had a non-compliance notice slapped on their door from the friendly folks at NASDAQ. This time though, they’re blaming the delay in filing on “severance matters”.
Not letting Atari have all the fun, American publisher Midway is looking down a double barrel of class-action suits over what investors are calling shady financial dealings. After a sharp rise in stock prices thanks to a major buying spree by Viacom’s Sumner Redstone, the pleasant returns soon collapsed, plummeting by over 50% when layoffs, internal “restructuring”, and the end of the spree killed any dreams of a diamond in the rough. Naturally, investors are peeved, and claim that Midway played an active role in the artificial inflation of its stock, while simultaneously misleading investors about projected financial earnings and conveniently omitting to mention factors that would drop stock prices. CEO David Zucker is accused of insider trading, having sold off a whack load of shares just prior to Redstone’s fit of buying. Ouch.
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