Feeds

SEC sticks up Grand Theft Auto maker for $3m

Settles backdating lawsuit

Build a business case: developing custom apps

Take-Two Interactive, publisher of the Grand Theft Auto video game series, has agreed to pay US regulators $3m to settle a lawsuit over illegally backdating employee stock options.

The maker of the popular series was among more than 200 companies involved in a tech industry wide backdating probe by the US Securities and Exchange Commission that saw Dell, Apple, McAfee and Brocade investigated.

SEC claimed Take-Two defrauded investors by altering the dates of when stock options were granted for officers, directors, and key employees to when the price closed at historic lows. The practice isn't illegal in itself - unless a company fails to report it to regulators and investors.

The SEC claimed 100 occasions between the years 1997 and 2003 under the direction of Take-Two's former chief executive Ryan Brant. The ex-chief was previously charged for his alleged role in the scheme. He agreed to pay more than $6.3m and to never serve as an officer or director to a public company.

Without admitting or denying the SEC's allegations, Take-Two agreed to pay a civil penalty of $3m and an additional $300,00 to the New-York state District Attorney for cost of investigation and lawyer fees.

As part of the settlement, however, the company acknowledged that: "Certain of its former directors and officers engaged in certain illegal behaviors related to the historical granting of stock options." In return, the New York DA won't pursue charges for those "certain" activities.

"Resolving this issue has been a key objective for Take-Two since the current management team took office in early 2007, and we are gratified to have put this matter behind us," Take-Two's chairman Strauss Zelnick said in a statement. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.