Another Lawsuit Filed Against Take Two

Take Two Interactive is in the thick of yet another legal battle having just come from an investigation by the SEC due to possible mishandling of stock option grants. This allegation is just a piece of the long line of difficulties that the game publisher is facing. It has lawsuits relating to the now infamous GTA Hot Coffee scandal, an FTC investigation, accounting irregularities and, more recently, a Grand Jury subpoena which could result in the criminal indictment of various executives at the firm.

The publisher is being accused of wasting corporate assets, abusing control and showing gross mismanagement in recent years, in a report filed on July 12th by shareholder Richard Lasky.

“This continuing decline in the quality and accuracy of Take Two’s financials is further indicative of the defendant’s conscious disregard for the company’s welfare. Indeed, defendants appear to be more interested in looting the company via the illegal re-pricing of stock options, rather than issuing accurate and truthful financials,” says Lasky in his lawsuit.

Currently, the company has ceased publishing games under the Take Two label and is instead putting in all efforts on three main brand names – Rockstar Games, Gathering of Developers, and new label Gotham Games.

Via gamesindustry

Take Two Interactive is in the thick of yet another legal battle having just come from an investigation by the SEC due to possible mishandling of stock option grants. This allegation is just a piece of the long line of difficulties that the game publisher is facing. It has lawsuits relating to the now infamous GTA Hot Coffee scandal, an FTC investigation, accounting irregularities and, more recently, a Grand Jury subpoena which could result in the criminal indictment of various executives at the firm.

The publisher is being accused of wasting corporate assets, abusing control and showing gross mismanagement in recent years, in a report filed on July 12th by shareholder Richard Lasky.

“This continuing decline in the quality and accuracy of Take Two’s financials is further indicative of the defendant’s conscious disregard for the company’s welfare. Indeed, defendants appear to be more interested in looting the company via the illegal re-pricing of stock options, rather than issuing accurate and truthful financials,” says Lasky in his lawsuit.

Currently, the company has ceased publishing games under the Take Two label and is instead putting in all efforts on three main brand names – Rockstar Games, Gathering of Developers, and new label Gotham Games.

Via gamesindustry