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Take-Two resolves stock option investigations

Allegations settled with the payout of USD 3.3m to the SEC and New York district attorney

Take-Two has entered into settlement agreements with the Securities and Exchange Commission and New York's district attorney, over investigations into the company's stock option practices.

While it would neither admit nor deny the SEC's allegations, Take-Two has agreed to pay a civil penalty of USD 3 million. The settlement is subject to approval by New York courts, but would bring the SEC's investigation to a close.

Likewise the company paid out USD 300,000 to New York's district attorney and admitted that former directors and officers engaged in illegal behaviours when granting stock options.

"We are pleased to have reached a settlement with both the SEC and district attorney with respect to the company's historical stock option granting practices," said Strauss Zelnick, chairman of Take-Two.

"Resolving this issue has been a key objective for Take-Two since the current management team took office in early 2007, and we are gratified to have put this matter behind us."

In 2007, Ryan Brant, former Take-Two CEO and founder, and two other of the former executives avoided jail time by pleading guilty to crimes such as falsifying business records and stock options data.

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James Lee

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