NEW YORK, Feb. 6, 2002 (PRIMEZONE) -- The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on December 18, 2001, on behalf of purchasers of the securities of Take-Two Interactive Software Inc., ("Take-Two" or the "Company") (Nasdaq:TTWO) between February 24, 2000 and December 17, 2001 inclusive (the "Class Period'). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/taketwo/
The action is pending in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, NY 10007, against defendants Take-Two, Ryan A. Brant (CEO until February 26, 2001, thereafter Chairman), Kelly G. Sumner ( director until February 26, 2001, thereafter CEO), James H. David Jr. (CFO from Take-Two's third quarter of fiscal year 2000), Paul Eibeler (President and director) and Larry Muller (CFO until the third quarter of Take-Two's fiscal year 2000).
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 24, 2000 and December 17, 2001, concerning its financial performance for the Company's fiscal year 2000 and the first three quarters of take-Two's fiscal year 2001. Throughout the Class Period, defendants issued press releases reporting Take-Two's quarterly and year-end financial performance, and filed reports confirming such performance with the United States Securities and Exchange Commission (the "SEC"). These reports positively portrayed Take-Two's performance during the Class Period and discussed several quarters of supposedly "record" results. These statements, as alleged in the complaint, were materially false and misleading because the Company had, throughout the Class Period, improperly recognized revenues, thereby inflating its reported sales and earnings. On December 14, 2001, the price of Take-Two's stock plunged 31%, falling from $15.05 to $10.33, as news leaked that the Company will likely restate previously filed financial reports. On December 17, 2001 Take-Two issued a press release announcing that the Company will restate its financial results for its fiscal year 2000 and the first three quarters of its fiscal year 2001. According to the press release, the Company had improperly recognized revenue on products that were subsequently returned to the Company. For fiscal year 2000, the restatement will have the effect of decreasing net sales by $12-$15 million and decreasing net income by $3.1-$3.7 million. For the three quarters of 2001, the restatement will have the effect of decreasing net sales by approximately $9.5 million and increasing net income by $0.3 million.
If you bought the securities of Take-Two between February 24, 2000 and December 17, 2001 you may, no later than February 18, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: taketwocase@milbergNY.com Website: http://www.milberg.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca