Take-Two Interactive might have knowningly hid pornogaphic materials in its Grand Theft Auto video game to achieve a milder content rating, which caused the stock price to reach artificially inflated levels.
This is a securities fraud class action against Take-Two Interactive Software and certain of its officers and directors alleging two separate wrongs.
First, this class action lawsuit alleges that Take-Two Interactive issued a series of materially false statements regarding the success of the Take-Two's video game Grand Theft Auto: San Andreas and the strong contribution that it was making to Take-Two's overall revenues. Take-Two failed to disclose that Take-Two improperly hid pornographic materials directly in the programming of the Grand Theft Auto: San Andreas in order to obtain a rating of "Mature 17+" by the powerful Entertainment Software Rating Board ("ESRB"). As alleged in the class action complaint, had the ESRB known of the pornographic materials contained in the game, it would have assigned it a rating of "Adults Only 18+" and it would not have been carried for sale in the major retail chains, who refuse to carry such games. Indeed, when it was subsequently disclosed that the ESRB had revised its rating on the game to "Adults Only 18+," Take-Two was forced to reduce its financial guidance.
Second, the securities fraud class action lawsuit has been amended to also allege that Take-Two engaged in the unlawful practice of back dating stock options.
Name (Stock Symbol)
Take-Two Interactive Software, Inc. (TTWO)
Take-Two Interactive Software, Inc. engages in the development, publication, and distribution of interactive software games.
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.