SEC Investigates Take-Two Again

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As if the Hot Coffee controversy with Grand Theft Auto: San Andreas (PC, PS2 and Xbox), the ESRB backlash and political whirlwind wasn’t enough, Take-Two finds itself at the center of a SEC investigation, again. Last June, the SEC filed a civil action in federal district court against against Take-Two’s former CEO, COO, CFO, Executive Vice President and its current Vice President of Sales (at the time) for “fraudulent accounting practices designed to inflate its reported revenue during fiscal years 2000 and 2001.”

Today, Take-Two sent out this announcement: “the Company has received notice from the Securities and Exchange Commission that it is conducting an informal non-public investigation into certain stock option grants made by the Company from January 1997 to the present. Prior to receiving the notice, the Company had initiated an internal review of the Company’s option grants, led by a committee consisting of independent board members who have retained independent legal counsel and accountants to assist in the review. The Company intends to respond to the SEC’s information request and to fully cooperate in the informal investigation.”