Take-Two Says Former CEO Doctored Stock Options

Take-Two Says Former CEO Doctored Stock Options

January 23, 2007
A number of media outlets, including USA Today, have reported that an internal investigation by Grand Theft Auto publisher Take Two Interactive has blamed former CEO Ryan Brant for backdating stock options from 1997-2003. Brant resigned as T2 chairman last October. He stepped down as CEO several years prior.

The investigation uncovered no wrongdoing by current executives. However, three former execs who declined to meet with investigators "appear to have had significant involvement in the company's stock-option granting process"

Brant was cited in a 2004 investigation by the Securities and Exchange Commission (SEC), which alleged that he and two other former T2 officials inflated company revenues. Although none of the executives named in that case admitted any wrongdoing, Take Two, Brant and the two executives paid penalties of more than $9 million, plus interest.

Reporter Roddy Boyd, who often covers Take Two for the New York Post, has more.
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Comments

Submitted by Matt - January 23, 2007 at 11:07 pm -0500
This backdating of stock is bad news for Take-Two. While they say Paul Eibler is innocent, I don't know if we can really trust him.
Submitted by Daniel - January 23, 2007 at 6:32 pm -0500
I've heard that Take-Two Interactive isn't popular on Wall Street and I hope that they survive the attacks by investors as well as the attacks by Jack Thompson. When the Warriors came out, they were attacked on wall street and their stocks plumetted. I didn't understand all of it, but you can read that story on www.gamespot.com and type in The Warriors and you should be able to find that story. In a way, Take-Two Interactive's position is like the position of the Warriors in the film and the game. I haven't played the game yet, but I have the film and it's awesome.

Take-Two Interactive is being blamed for a lot of things and being ambushed just like the warriors and I hope that, like the warriors, they make it through the hard times and survive the attacks from the anti-game activists and the people on Wall Street, who don't like them. Just like the warriors, they find themselves being attacked for no good reason other than people are stupid. Also, watch the film "The Warriors." It's one of the greatest films ever and the greatest film made before 1980. It rocks.
Submitted by kurisu7885 - January 24, 2007 at 5:36 am -0500
Yipes, talk about bad. Iheard Take Two was in trouble but DAYUM!!! And as much as I hate to say this, a certain someone will be attracted to this and claim is as "evidence."
Submitted by Brokenscope - January 26, 2007 at 12:18 am -0500
@Daniel

They broke regulations.. and possible laws.

God damn.
Submitted by Snakestream - January 23, 2007 at 12:59 pm -0500
@Zippy

60%? If I had any say in it, they would take away 100% of any money they obtained while defrauding the company, and they should also be thrown in jail for fraud. After all, a corporation is technically a public business, and if someone robs it, they should be jailed. Stock fraud is almost as bad as going out and robbing a store at gunpoint, so why do the CEOs get to keep the money they stole and avoid jail time?
Submitted by BustermanZero - January 23, 2007 at 10:26 am -0500
Huh, so it appears it may not of been scapegoating after all. With any luck the company might even save face a bit.
Submitted by Jabrwock - January 23, 2007 at 10:51 am -0500
backdating stock options from 1997-2003

And therein lies the problem with granting stock options. My company has very strick rules about how options can be "cashed in". I don't know if they were put in place in response to stuff like this, but they're pretty clear about the need for transparency and lots of documentation so if something fishy goes on, there's a clear trail.
Submitted by DoggySpew - January 23, 2007 at 10:51 am -0500
Take Two has done some stupid things, but remember, they are not the creators or developers of the GTA series. They are merely the publisher.
Submitted by ZippyDSMlee - January 23, 2007 at 10:18 am -0500
I love it when CEOs rake in millions and are only obligated to pay 10% of their earnings if that,if they dear to screw with the system the system should take 60% of their earnings they made when they were cooking the books.
Submitted by Securities - February 20, 2007 at 2:13 pm -0500
Ex-Take-Two Head Pleads Guilty to Backdating...

Ryan Brant, the ex-CEO of the video game publisher Take-Two, pleaded guilty to charges of backdating and agreed to pay $7.3 million to settle two options-related cases. Brant is Take-Two's founder. He apologized for his actions: "I am deeply sorry......

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