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.

Posted in Court Cases Take-Two Interactive

Comments

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

Submitted by hellfire7885 on Thu, 04/01/2010 - 16:19.

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

Submitted by jedidethfreak on Fri, 04/02/2010 - 14:12.

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.

---

You KILL Vampires. You don't DATE them.

--- With the first link, the chain is forged.

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

Submitted by Chris Kimberley on Thu, 04/01/2010 - 12:45.

"...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?

===============

Chris Kimberley

===============

Chris Kimberley

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

Submitted by E. Zachary Knight on Thu, 04/01/2010 - 13:21.

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

E. Zachary Knight
Divine Knight Gaming
Random Tower: Game News and Commentary

Shout box

tallimar: http://news.cnet.com/8301-1035_3-57440902-94/microsoft-legal-win-over-google-may-signal-ceasefire/05/24/2012 - 10:17pm

ZippyDSMlee: TIme or an operation!05/24/2012 - 6:43pm

ZippyDSMlee: PC parts are in wish me luck or hell!!05/24/2012 - 6:43pm

MaskedPixelante: 38 Studios and Big Huge Games are pretty much dead now. http://www.joystiq.com/2012/05/24/38-studios-and-big-huge-games-lay-off-entire-staffs05/24/2012 - 4:39pm

DorthLous: Actually, nop, I did miss the emoticon for some reason (getting used to pics?) and I didn't know you changed it since (since I posted previous to my shout and it was still there.) Anyhow, thanks for taking it out!05/23/2012 - 6:01pm

james_fudge: Well we were just testing it. but it is still on the submission to fight $pam.05/23/2012 - 5:48pm

E. Zachary Knight: James, No I don't have it. I was just wondering who does and why. More curiosity than anything.05/23/2012 - 5:38pm

james_fudge: Did you not see the emoticon and did you not see that it has already been changed back?05/23/2012 - 5:10pm

james_fudge: LOL05/23/2012 - 5:07pm

DorthLous: Why? Not shocked that people are barking to an additional hoop to jump through when posting from their already logged in account or just mentionning this to try to paint me as one always complaining?05/23/2012 - 4:45pm

james_fudge: big shock there ;)05/23/2012 - 4:30pm

DorthLous: I'll add my voice to those wanting it gone :S I'm already logged in, I don't need a captch'a. That's for those registering.05/23/2012 - 3:54pm

james_fudge: Et tu EZK?!?05/23/2012 - 3:51pm

Craig R.: I'm a One Man Quorum! And it's working for me now, thanks. :)05/23/2012 - 3:48pm

E. Zachary Knight: How do we determine who get's the game/captcha thingy? Is there a certain posting threshhold users have to meet before it is turned off?05/23/2012 - 2:25pm

james_fudge: Give it a chance, we're still adjusting it ;)05/23/2012 - 11:20am

james_fudge: One does not a Quorum make Craig.05/23/2012 - 11:16am

Craig R.: If I complete the stupid game, and it just deletes my comment, what's the point?05/23/2012 - 11:15am

Craig R.: Ok, the little captcha game? You can get rid of it already.05/23/2012 - 11:13am

Craig R.: FCC boss is giving the thumbs up to usage-based pricing for Internet access05/23/2012 - 11:08am

All shouts

<< Return To Top

Forgot your password?
Username :
Password :