A class action has been filed against Take-Two Interactive Software, Inc. (TTWO), certain of its officers and directors by stockholders who purchased the company's common stock between October 25, 2004 and January 27, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

According to a press release dated February 2, 2006, the complaint charges Take-Two and certain of its officers and directors with violations of the Securities Exchange Act of 1934 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.

The complaint further alleges that on or around 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 bought Take-Two Interactive Software, Inc. securities between October 25, 2004 and January 27, 2006, inclusive, and would like to obtain information about the Take-Two Interactive Software, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.