Take-Two's widespread litigation issues regarding GTA: San Andreas and the infamous Hot Coffee mod have gained further momentum, as the City of Flint and its Pension Fund file a new class action lawsuit alleging fraud and insider dealing.
Filed in federal court on Tuesday, the latest lawsuit alleges that Take-Two deceived investors - including Flint's pension fund - by misrepresenting the value of the company and concealing the fact that retailers were removing the publisher's biggest selling title from stores due to the embedded explicit game content which would have generated an Adults Only rating had it been disclosed.
Mayor Don Williamson commented: "Fraud against the taxpayers of Flint and our retired Flint police officers and fire-fighters will not be tolerated."
"Not only was the city pension fund deceived as to the value of the stock, but the true nature of what this company was selling was being concealed too," he added.
Drawing extensively from the publisher's SEC filings, the new lawsuit echoes allegations made in two recent legal filings issued in February, accusing company executives of insider trading, selling off USD 18 million worth of company stock during the Hot Coffee scandal.
Take-Two's legal team have more than enough work to do already, defending FTC investigations, countless lawsuits in various US states, and allegations of misconduct, fraud, insider dealing and financial accounting irregularities. The company's SEC filings had suggested that further lawsuits were possible, and unfortunately for the firm, the new class action filing from the City of Flint may not be the last.