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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Mattsworknamemeet ips. stupid phone.05/27/2015 - 11:34pm
MattsworknameI feel ups should have a hard line expiration date. if a company doesn't use them for ten years they have to put it on the market or make it open source05/27/2015 - 11:34pm
MechaCrashPride does play a factor. If you sell an IP to someone, and they make a ton of money off it, it makes you look like a tool: why didn't YOU make that money? Better to sit on it than be embarassed that way.05/27/2015 - 10:58pm
ZippyDSMleeAS far as I understand it the suits think sitting on a an IP till the time is right is more profitable than tradeing it around.....hevean forbit soemone use soemthing to make money with....05/27/2015 - 9:58pm
Andrew EisenOh, there's also the Facebook page.05/27/2015 - 4:29pm
hidannikOkay :( Guess I'll just have to YouTube it when I've caught up on all the other podcasts.05/27/2015 - 4:13pm
Andrew EisenI honestly don't know. The show is on my YouTube channel and we promote it here on the site every week.05/27/2015 - 4:11pm
hidannikIs there nothing a podcast app can key on?\05/27/2015 - 4:09pm
Andrew EisenYeah, we lost Libsyn quite some time ago. As such, no RSS or iTunes. We're working on finding a new (and cost effective) home but it's been really slow going.05/27/2015 - 4:07pm
hidannikThe last one on that feed was Feb 905/27/2015 - 4:05pm
hidannikThe feed is at superpac.libsyn.com05/27/2015 - 4:05pm
hidannikI ask because it hasn't shown up in my PocketCasts feed in a while. (I'm currently a month behind)05/27/2015 - 4:02pm
E. Zachary KnightAE, Loved your mom as the guest on your 30 Days of Netflix series. She is one interesting lady.05/27/2015 - 3:47pm
E. Zachary Knighthidannik, If you mean on iTunes, we are working to get it back up there soon. Otherwise, the show must go on. We record live every Saturday at 8pm Central05/27/2015 - 3:47pm
Andrew Eisenhidannik - The podcast will continue this weekend and every weekend after for the foreseeable future. What makes you ask?05/27/2015 - 3:29pm
Matthew WilsonI say no it isnt, but it depends on the reason for not selling it. were the pressured to not sell it. aka target au, or did they chose not to on their own aka gog with hatred.05/27/2015 - 3:28pm
hidannikIs there no more podcast?05/27/2015 - 3:26pm
E. Zachary KnightHere is another thought exercise. How would you feel if game developers traded in IP? http://gamasutra.com/blogs/JorgeMunoz/20150520/243471/Why_dont_developers_buysell_intellectual_property_much_like_other_assets.php05/27/2015 - 3:24pm
Andrew EisenSlightly Mad Studio comments on Wii U version of Project Cars: http://www.nintendolife.com/news/2015/05/exclusive_slightly_mad_studio_head_ian_bell_sets_the_record_straight_on_project_cars_wii_u05/27/2015 - 11:54am
E. Zachary KnightGamasutra has a really interesting interview with the Hatred developers. http://gamasutra.com/blogs/AlbertPalka/20150526/244229/Real_talk_with_Destructive_Creations_Hatred_interview.php05/27/2015 - 10:11am
 

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