Take-Two Pays $3M to Settle Stock Options Backdating Probe

Authored by Mark Hefflinger on April 1, 2009 - 9:56am.

Washington - The U.S. Securities and Exchange Commission (SEC) on Wednesday said that video game publisher Take-Two Interactive (NASD: TTWO), makers of the "Grand Theft Auto" franchise, has paid $3 million to settle SEC charges that it backdated stock options. The SEC said that former Take-Two chairman and CEO Ryan Brant and other former executives took part in a scheme that granted backdates stock options more than 100 times between 1997 and 2003.

As a result, the SEC said, Take-Two falsified its reported income during that period.

"Take-Two's seven-year backdating scheme was egregious and pervasive, and caused the company to materially misrepresent its financial condition to investors," said Christopher Conte, an Associate Director in the SEC's Division of Enforcement.

"Our enforcement action today underscores our commitment to holding public companies accountable for false reporting and disclosures, and imposing penalties where appropriate."

The company also agreed to an injunction against future violations of certain provisions of the federal securities laws.

Related Links:
http://sec.gov/news/press/2009/2009-72.htm

http://www.businesswire.com/news/home/20090401006088/en

http://www.take2games.com