HARTFORD, Conn., Feb. 2, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the common stock of Take-Two Interactive Software, Inc. ("Take-Two" or the "Company") (Nasdaq:TTWO) between October 25, 2004 and January 27, 2006, inclusive, (the "Class Period").
The Complaint alleges defendants violated federal securities laws by issuing a series of materially false statements regarding 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. Specifically, defendants failed to disclose that Take-Two improperly hid pornographic materials directly in the programming of the Grand Theft Auto: San Andreas in order to obtain a rating of "Mature 17+" by the powerful Entertainment Software Rating Board ("ESRB"). 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, 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.
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, that Take-Two and Rockstar violated sections of the California Business and Professions Code by publishing untrue and misleading statements and engaging in unfair competition. On this news, Take-Two's stock fell below $14 per share.
If you are a member of the class, you may, no later than April 4, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca