Take-Two Interactive Settles Backdating Stock Options Case For $3 Million
Take-Two Interactive Software, Inc. (NASDAQ:TTWO), the $680 million company that is in charge of the Grand Theft Auto series. Take-Two will pay $3 million to the SEC for a backdating stock options case. The final settlement will still need approval from a federal court in New York.
Take-Two’s former CEO Ryan Brant plead guilty in 2007 for a similar criminal case. Brant plead guilty to making records false and was sentenced probation for 5 years.
“Take-Two’s seven-year backdating scheme was egregious and pervasive, and caused the company to materially misrepresent its financial condition to investors,” stated S.E.C. attorney Christopher Conte.
Take-Two will also pay Manhattan district attorney Robert Morgenthau $300,000 for the cost of the investigation of the backdating scandal. The district decided not to prosecute 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,” stated Take-Two Chairman Strauss Zelnick.
[via NYT]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry