Skip to content
AnalystLens

TAKE TWO INTERACTIVE SOFTWARE INC 8-K Report, Corporate Update (Sep 16, 2024)

Reports
Other Events
Filing Date
Filed September 16, 2024
Period End
September 13, 2024
Security
TTWO
In the record · 2016–202610-K1110-Q338-K116

TTWO filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 116 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · May ’18May ’18
  2. Material agreement8-K · Jun ’22Jun ’22
  3. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed September 16, 2024. Cited figures are marked; the original filing is the authoritative source.

Take-Two Interactive Software, Inc. (TTWO) has disclosed an unfavorable jury verdict in a patent infringement lawsuit filed by IBM against its subsidiary, Zynga Inc. The jury found that certain Zynga games infringed on IBM's U.S. Patent Nos. 7,072,849 and 7,702,719, awarding IBM damages of $44.9 milliona.

This development, stemming from a trial that concluded on September 13, 2024, is a significant event for the company, although the patents in question have since expired. Despite the verdict, Zynga is not required to alter or cease operations of the implicated games.

The company maintains that the verdict is not supported by the facts and law, and has stated its intention to pursue post-trial motions and an appeal to overturn the decision and reduce or eliminate the awarded damages. Investors should monitor the company's progress in these legal proceedings as they may impact future financial results.

02—Key points

Key Highlights

  1. IBM was awarded $44.9 million in damages from Zynga in a patent infringement lawsuit.
  2. A jury found that certain Zynga games infringed on two IBM patents (U.S. Patent Nos. 7,072,849 and 7,702,719).
  3. The trial concluded, and the verdict was returned on September 13, 2024.
  4. The patents in question have expired.
  5. Zynga is not required to modify or discontinue any of its games as a result of the verdict.
  6. Zynga intends to challenge the verdict through post-trial motions and an appeal, seeking to overturn it and reduce or eliminate the damages.
  7. The company believes the verdict is not supported by the facts and the law.

03—Questions

Frequently Asked Questions

  1. What is the financial impact of the $44.9 million damages award?

    While the $44.9 million award is a significant figure, the immediate financial impact depends on Take-Two Interactive's ability to overturn or reduce the damages through post-trial motions and appeal. The company has not indicated any immediate need to reserve for this amount at this time, but investors should consider it a potential liability that could affect future earnings or cash flow if not successfully challenged.

  2. Can Zynga continue to operate the games that were found to be infringing?

    Yes, the ruling explicitly states that Zynga will not have to modify or stop operating any of the games at issue. This is partly because the patents themselves have expired.

  3. What are Zynga's next steps regarding the lawsuit?

    Zynga believes the verdict is not supported by the facts and the law. The company plans to file post-trial motions and pursue an appeal to overturn the jury's decision and reduce or eliminate the $44.9 million damages award.

  4. When did this lawsuit originate?

    IBM initially filed the lawsuit against Zynga in the United States District Court for the District of Delaware on May 2, 2022.

04—Continue

← View all 8-K filings