Defendant Name:
Take-Two Interactive Software, Inc.
Defendant Type:
Public Company
SIC Code:
7370
CUSIP:
87405410
Initial Case Details
Legal Case Name
SEC v. Take-Two Interactive Software, Inc.
First Document Date
01-Apr-2009
Initial Filing Format
Civil Proceeding
Case Number
09-cv-03113
Allegation Type
Issuer Reporting and Disclosure
Federal District Court
New York, Southern District of New York
Violations Alleged
•
Sec 17(a) (Not specified)
Resolutions
First Resolution Date
01-Apr-2009
Headline Total Penalty and Disgorgement
$3,000,000
Related Documents:
Complaint
On April 1, 2009, the SEC filed a complaint against Take-Two Interactive Software, Inc. The Commission stated: "From April 1997 through at least September 2003, defendant Take-Two Interactive
Software, Inc. ("Take-Two" or the "Company"), through its former Chairman of the Board and
Chief Executive Officer ("CEO") Ryan Brant ("Brant") and certain other former senior
executives at Take-Two, fraudulently enriched officers, directors, and key employees at the
Company by granting them backdated, undisclosed "in-the-money" stock options that coincided
with dates of historically low annual and quarterly closing prices for Take-Two's common stock.
As a result of the backdating scheme, Take-Two's records falsely indicated that the grants had
occurred on the earlier dates when the Company's stock price had been at a low."
Take-Two Pays $3 Million Civil Penalty to Settle Fraud Charges in Stock Options Backdating Scheme
The SEC "announced
the filing of a civil action against video and computer game publisher and
distributor Take-Two Interactive Software, Inc. ("Take-Two"), alleging that
during a seven year period, Take-Two defrauded investors by granting
backdated, undisclosed "in the money" stock options to officers, directors,
and key employees while failing to record required non-cash charges for
option-related compensation expenses."
2009-72
01-Apr-2009
Press Release--Civil Action
SEC Charges Take-Two for Stock Options Backdating Scheme
The SEC stated that: "[It] charged video and computer game publisher and
distributor Take-Two Interactive Software, Inc. for falsifying its reported
income over a seven-year period. Take-Two agreed to pay a $3 million
penalty to settle the SEC's charges that the company defrauded investors
by granting backdated, undisclosed "in-the-money" stock options to
officers, directors, and key employees while failing to record required non-cash charges for option-related compensation expenses"
Final Judgment
On April 4, 2009, the Court issued a final judgment against Take-Two Interactive Software, Inc., stating: "Defendant Take-Two Interactive Software, Inc. . . . consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."
