Game Publisher Take-Two May Face SEC Lawsuit Over Accounting

Authored by Mark Hefflinger on December 19, 2003 - 4:36am.

New York -- Video game publisher Take-Two Interactive has announced that it received notice the U.S. Securities and Exchange Commission (SEC) may file civil charges against the company related to its accounting practices. The lawsuit would seek an injunction and monetary damages against the company, alleging violations of certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC's staff informed Take-Two through a Wells Notice of its intention to recommend that the SEC file charges. The company said it has "initiated discussions" with the SEC on the matter. Separately, New York-based Take-Two said that it will close its Gotham Games publishing label. The company's Gathering label will take over publishing duties for all of its mid-priced and premium priced products on the PC, console and handheld platforms not published by its Rockstar Games label.
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