Take-Two Interactive Cleared over Misleading Shareholders

With its Annual General Meeting due at 6:30pm New York time tonight, Take-Two executives can face shareholders knowing that at least one issue has been cleared up.

According to Reuters, "U.S. District Judge Shirley Wohl Kram in Manhattan found that the current claims did not adequately show that the company intended to deceive investors about the hidden content in its Grand Theft Auto: San Andreas game."

That hidden content, in case you've recently slid out of a coma (in which case, well done and welcome back), was the infamous Hot Coffee sex-mod.

Says Reuters, "The securities fraud suit, brought in 2006, accused Take-Two of misrepresenting its compliance with the rules of the video game industry's rating board when submitting the San Andreas title for review, as well as issuing false statements about its option awards practices."

In ruling on the Hot Coffee case, Judge Kram also pointed out that because no casual link could be forged between hidden sex scenes in a video game aimed at young males and a fall in T2's share price (!), the plaintiff's damages in the event that option awards practices could be limited.

Take-Two responded, "We are pleased with the judge's ruling, which dismissed without prejudice the plaintiff's claims regarding Grand Theft Auto: San Andreas and narrowed the scope of the options backdating case.

"We continue to believe that the remaining claims are without merit and we will continue to defend against them."

We await the outcome of tonight's AGM...

^{Source: Reuters}