Yesterday, Take-Two announced changes to their board of directors in which one board member resigned. The reason was not known, until today, when a letter explaining her reasons for departure were filed with the SEC. In the letter, her lawyer outlines “several matters” that caused her “concern,” including “Take Two’s discovery of illicit images in its ‘Grand Theft Auto’ videogame (ed. Hot Coffee on PlayStation 2 and Xbox), the Federal Trade Commission’s investigation of Take-Two following that discovery, and various SEC inquiries directed at Take-Two and its employees.”
The letter goes on to say that, “more recently, in connection with preparation of the 10-K and its late filing, Ms. Kaczynski’s concerns have risen significantly because of what she views as an increasingly unhealthy relationship between senior management and the board of directors. In her experience, management’s interactions with the board were characterized by a lack of cooperation and respect. Moreover, Ms. Kaczynski felt that management failed to keep the board informed of important issues facing the company or failed to do so in a timely fashion. In these circumstances, Ms. Kaczynski decided to resign her position as a member of the board.”
