If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Take-Two faces SEC investigation

Take-Two Interactive has announced that the company will be investigated by the US Securities and Exchange Commission, scrutinising various stock option grants made from 1997 to date.

Take-Two Interactive has announced that the company will be investigated by the US Securities and Exchange Commission, scrutinising various stock option grants made from 1997 to date.

According to a company statement, Take-Two had initiated its own internal review of the firm's option grants, "led by a committee consisting of independent board members who have retained independent legal counsel and accountants to assist in the review."

The publisher intends to respond to the SEC request, and has stated that it will co-operate fully with the informal, non-public investigation.

Whilst it is unclear exactly what the investigators hope to uncover, or indeed the exact nature of the investigation itself, an Associated Press report notes that Take-Two is just one of a number of companies currently being investigated by the SEC for possible mishandling of stock option grants.

"Many companies are alleged to have backdated stock option grants to time them at share price lows, thus boosting gains on the sale of the stock," the AP reports.

The news follows a long run of difficulties for the publisher, Take-Two facing numerous lawsuits relating to the now infamous GTA Hot Coffee scandal, an FTC investigation, accounting irregularities and, more recently, a Grand Jury subpoena which could result in the criminal indictment of various executives at the firm.

Tagged With
Author

Paul Loughrey

Contributor