SJC sends Redstone case back to court

Nephew's lawsuit says he was cheated

A National Amusements spokeswoman said the court decision ''is a big win for [National Amusements] and Sumner Redstone.'' (AP special to The Boston globe/file 2001)

A lawsuit that accuses media mogul Sumner Redstone of cheating his nephew Michael Redstone will head back to court following a ruling yesterday by the Massachusetts Supreme Judicial Court.

The initial lawsuit, filed in 2006 by Michael Redstone, alleged that Sumner Redstone in 1972 bought out his own brother, Edward Redstone, partially with shares of movie theater chain National Amusements Inc. that belonged to Michael Redstone and his sister.

That claim yesterday was sent back to a lower court. But the SJC backed a lower court's ruling that the statute of limitations had expired on a separate charge of wrongdoing involving a 1984 transaction that could have cost Sumner Redstone and the theater chain billions of dollars.

"This decision is a big win for [National Amusements] and Sumner Redstone," said Brandy Bergman, a spokeswoman for National Amusements. "The highest court in the state affirmed the dismissal of every part of the suit save for one allegation, which it said that the lower court had to address first." And even if Michael Redstone could prove that claim, Bergman said, "the court has essentially capped the damages at less than $5 million."

Mark E. Swirbalus, a Boston lawyer on the team representing Michael Redstone, declined to comment.

Meanwhile, Sumner Redstone's daughter, Shari Redstone, who serves as the president of National Amusements, yesterday resigned her post as chairwoman of Midway Games Inc., a Chicago game publisher in which National Amusements has a large stake.

Midway, which has accumulated millions of dollars in losses in recent years, has been a source of tension between Shari Redstone and her father.

In a press release yesterday disclosing her resignation, Shari Redstone said, "With my recent appointment to the special committee of the National Amusements board of directors, I am resigning from the Midway board to focus on these responsibilities."

Jenn Abelson can be reached at abelson@globe.com.