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

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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.