There was some good news for Take-Two today buried within its recent SEC filing - it has finally been able to shake off a legal battle with an alleged shareholder who was arguing for more cash in shares he was short-selling.
The plaintiff, Wilamowsky, took the publisher to court - as well as its former CEO and three other former directors - claiming that their stock options messed with the price of his own shares. A United States District Court for the Southern District of New York found that this wasn't the case - and turned Wilamowsky out on his rear end.
It turns out that the guy simply made a dumb share-selling decision and was looking to blame the company for it. Reads the footnotes of the court case judgement
, "had Plaintiff waited to cover until July 10, 2006, when (following a period of substantial decline in 2005 and 2006) Take-Two's stock fell to $9.34 per share, he would have stood to gain a total profit of approximately $13 million."
"Having sold Take-Two at an average price of $23.38 (Compl. ¶ 160), Plaintiff thus could have earned an immediate profit by covering at $22.30 at the beginning of the holding period. That Plaintiff chose to wait as the price spiked due to indisputably legitimate market forces during the holding period undermines any plausible causal link between the alleged misconduct and his harm."
On the 30th September 2011, the Court "granted the Company's and the individual defendants' motions to dismiss, dismissing all of Plaintiff's claims with prejudice." Which means Wilamowsky's not coming back.