NASHVILLE, Tenn., Feb. 2, 2006 (PRIMEZONE) -- Barrett, Johnston & Parsley today announced that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Take-Two Interactive Software, Inc. ("Take-Two" or "the Company") (Nasdaq:TTWO) common stock during the period between October 25, 2004 and January 27, 2006 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from February 1, 2006. If you wish to discuss this action or have any questions concerning this notice or your rights or interests or would like to obtain a copy of the Complaint, please contact plaintiff's counsel, Timothy L. Miles at 615/244-2202 or via e-mail at tmiles@barrettjohnston.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Take-Two and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Take-Two, together with its subsidiaries, is a global developer, marketer, distributor and publisher of interactive entertainment software games and accessories for personal computers and game consoles, such as PlayStation(r). The Company derives the significant majority of its sales in the U.S. and its largest customers include Best Buy, Blockbuster, Circuit City, Electronics Boutique, GameStop, Target, Toys R Us, Wal-Mart, and other national and regional drug store, supermarket and discount store chains and specialty retailers.
The Complaint alleges that, during the Class Period, defendants made numerous representations about the success of the Company's video game Grand Theft Auto: San Andreas and the strong contribution that it was making to the Company's overall revenues. However, as alleged in the Complaint, defendants failed to disclose that, in order to distinguish this new product in an already saturated videogame market, the Company improperly hid pornographic materials directly in the programming of the Grand Theft Auto: San Andreas game. The Complaint further alleges that defendants failed to disclose the inclusion of the pornographic materials in order to obtain a rating of "Mature 17+" by the powerful Entertainment Software Rating Board ("ESRB"), a private group that rates video games. As alleged in the Complaint, had the ESRB known of the pornographic materials contained in the game, it would have assigned it a rating of "Adults Only 18+" and it would not have been carried for sale in the major retail chains, such as Wal-Mart and Target, who refuse to carry such games. Indeed, when it was subsequently disclosed that the ESRB had revised its rating on the game to "Adults Only 18+," the Company was forced to reduce its financial guidance.
Then, on January 27, 2006, it was announced that the City Attorney for the City of Los Angeles filed an action against the Company and its subsidiary, Rockstar, in the Superior Court of the State of California alleging, among other things, that the Company and Rockstar violated sections of the California Business and Professions Code by publishing untrue and misleading statements and engaging in unfair competition.
Following this announcement, Take-Two's stock price plunged below $14 per share, on more than 20 million shares traded -- approximately ten times the average daily trading volume during the entire preceding 12 months.
Plaintiff seeks to recover damages on behalf of all purchasers of Take-Two common stock during the Class Period. The plaintiff is represented by Barrett, Johnston & Parsley, who has extensive experience in prosecuting investor class actions and actions involving financial fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca