Take 2 has stated that is now under formal investigation by the Securities and Exchange Commission over stock options granting practices, a measure that will allow the SEC to subpoena witnesses.
publisher has already been plagued by problems relating to its option granting processes. Former chairman and chief executive Ryan Brant becoming the first CEO to be convicted of backdating stock options. He narrowly avoided prison by pleading guilty to charges and is now unable to act as an officer or director of a public company for five years.
The investigation also comes only comes less than a week after Take 2's boardroom revolt
. Stockholder actions resulted in the removal of Paul Eibeler, former CEO and President of Take-Two, and his replacement
with the former CEO of Tomb Raider
developer Crystal Dynamics, Strauss Zelnick.
Rather predictably, Take 2's shares took a drop of 32 cents in pre-market trading.
At least Take 2 can take some small comfort in the fact that Jack Thompson's no longer accusing it of racketeering...