Summary
Take-Two Interactive Software, Inc. (TTWO) reported on July 24, 2006, via an 8-K filing, the initiation of a shareholder derivative lawsuit on July 12, 2006. The complaint, filed by Richard Lasky in the U.S. District Court for the Southern District of New York, names the Company as a nominal defendant and includes current and former officers and directors as defendants. The lawsuit alleges serious violations, including breaches of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of anti-fraud provisions of the Securities Exchange Act of 1934. Specific claims involve issuing false and misleading financial statements and press releases, repurchasing stock at inflated prices, improper stock option grants, and trading on material non-public information. The plaintiff seeks unspecified damages and various forms of equitable relief.
Key Highlights
- 1Shareholder derivative lawsuit filed against Take-Two Interactive and its current/former officers and directors.
- 2Allegations include breaches of fiduciary duty, unjust enrichment, waste of corporate assets, and securities law violations.
- 3Plaintiff claims the company issued false/misleading financial statements and press releases.
- 4Allegations extend to stock repurchases at inflated prices and improper stock option issuances.
- 5Claims of trading on material non-public information by certain individual defendants.
- 6Company has referred the complaint to its Special Litigation Committee for review.
- 7Take-Two will not file additional 8-K reports for substantially similar lawsuits.