Judge: Lawsuit Against ex-Take2 Execs Can Move Forward

April 1, 2010 -

A lawsuit that alleges ex-executives of Take-Two Interactive Software illegally backdated stock options has been given the go-ahead to continue by a Manhattan federal judge.

Originally brought by Take-Two shareholders, Reuters reports that the suit targets former CEOs Ryan Brant and Kelly Sumner, along with ex-CFOs Larry Muller and James David with securities fraud based on options awarded after July 12, 2001. While U.S. District Judge Laura Taylor Swain did dismiss an undetermined amount of claims because of their age, she ruled that it was inappropriate to dismiss the post-July 2001 claims because it was “far from clear” if they were brought too late.

The process of backdating stock options was described as involving “retroactive grants of stock options as of dates when stock prices are low, making the options more valuable.”

Take-Two already paid $3.0 million to Securities and Exchange a year-ago over similar allegations, in addition to a $300,000 payment made to the office of the Manhattan District Attorney to avoid criminal charges on the matter.


Comments

Re: Judge: Lawsuit Against ex-Take2 Execs Can Move Forward

Eh, I'm not going to defend the execs on this. If they engage in illegal activities, they deserve to be caught and punished.

My only issue is what one or two idiots may say about this "confirming" their beleifs of game industry racketeering, whatever that is.

Re: Judge: Lawsuit Against ex-Take2 Execs Can Move Forward

I just see this as one more reason why nobody is going to buy T2, with the possible exception of EA.  As such, if either they keep EA from buying it, or EA stops trying, the shareholders are pretty much fucked as far as their stock prices are concerned, as there's not going to be any more interest in the company.

I'm not sure, but there may be more legal action coming to T2 in relation to this, seeing as how there was so much intentionally done by T2 execs to keep EA from buying it.

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Re: Judge: Lawsuit Against ex-Take2 Execs Can Move Forward

"...in addition to a $300,000 payment made to the office of the Manhattan District Attorney to avoid criminal charges on the matter."

Is it just me or is this a legalized bribe?

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Chris Kimberley

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Chris Kimberley

Re: Judge: Lawsuit Against ex-Take2 Execs Can Move Forward

Its more of a fine or an out of court settlement. They can pay the low fine now or go to court over it and possible pay more or go to jail.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

 
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Goth_SkunkAhh! I misinterpreted your statement about being left with almost every game in existence. I interpreted it as 'If you boycott games he's been involved with, you're boycotting almost all of them.'03/05/2015 - 9:31pm
Andrew EisenGoth - Card has been involved with only a small handful of games so if one were to boycott games for his involvement, they wouldn't be missing out on many games.03/05/2015 - 9:29pm
Goth_Skunk@Craig: Only if you're not interested in seeing it end.03/05/2015 - 9:27pm
Craig R.Instead of calling people the "anti gamergate faction", you could just call them "sane"03/05/2015 - 9:23pm
Goth_SkunkWhat do you mean 'almost every game in existence'? Card is a writer, not a game developer.03/05/2015 - 9:18pm
Andrew EisenBut I too wonder how many people who cry boycott actually follow through. I vaguely remember a few years ago a bunch of people boycotting one of the CoD games and were all found playing it on Steam.03/05/2015 - 7:53pm
Andrew EisenAn interesting quandary but not equivalent as boycotting games that Card was involved with leaves you with... well, almost every game in existence.03/05/2015 - 7:51pm
MechaTama31I agree that it's silly to avoid buying a game because one person involved with it said some things you disagree with. But I wonder how many of the people calling it silly this time have boycotted games for, say, Orson Scott Card's involvement?03/05/2015 - 7:40pm
PHX Corphttp://www.myfoxphilly.com/story/28274296/officer-injured Officer In Critical Condition Following Shooting Inside North Phila Game Stop03/05/2015 - 6:55pm
WonderkarpThe Shutup was a quick interjection saying "HEY! EVERYBODY SHUT UP AND LOOK AT THIS!" and I got the Critical Condition from a Local news site. I linked TMZ.03/05/2015 - 6:49pm
Andrew EisenThey call me The Jaws of Life.03/05/2015 - 6:48pm
Goth_SkunkThat's terrible. Now that it's been noted, can we return to Andrew's amazing steel-tearing teeth?03/05/2015 - 6:42pm
Andrew EisenWell, sucks that that happened and I'm glad he's alright (nothing in the article you linked says he's in critical condition) but there's no need for anyone to shut up.03/05/2015 - 6:41pm
WonderkarpEVERYBODY SHUT UP! Harrison Ford is in Critical Condition After A Plane Crash!! D: http://www.tmz.com/2015/03/05/harrison-ford-plane-crash-landing-golf-course-santa-monica/03/05/2015 - 6:38pm
Goth_SkunkIt ruined my joke about your billionaire lifestyle affording you state-of-the-art dentistry. I longed to see you fill your mouth with steel-tearing jaws.03/05/2015 - 6:32pm
Andrew EisenYep, typos happen. Even on the invoices I send for my freelance work. Yeah, that's always super embarrassing.03/05/2015 - 6:29pm
Goth_Skunk"Steel" your fr- aww crap you fixed it.03/05/2015 - 6:26pm
Andrew EisenReally? Whatever I say? Okay... I'm a handsome, impressively endowed, billionaire genius with a complete set of He-Man action figures and everyone wants to steal my Fruit Loops!03/05/2015 - 6:18pm
PHX Corp@AE I'm still buying Codename S.T.E.A.M. and the New Nintendo 3DS probaly as soon as said game Launches03/05/2015 - 6:16pm
Goth_SkunkWhatever you say.03/05/2015 - 6:15pm
 

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