Take-Two Interactive Software has reached an agreement in principle to settle a previously disclosed consolidated securities class action currently pending in the United States District Court for the Southern District of New York (the “Court”) against the Company, Rockstar Games, and certain of the Company’s current and former officers and directors. The class action was related to allegations of the purported “Hot Coffee” content contained in the Company’s Grand Theft Auto: San Andreas title and historical stock option granting practices.
Under the proposed settlement, the class action will be dismissed in exchange for an aggregate payment of $20,115,000 into a settlement fund for the benefit of class members, of which $15,200,000 will be paid by the Company’s insurance carriers, and $4,915,000 will be paid by the Company. Take-Two fully accrued for its portion of the settlement costs over several quarters ended April 30, 2009. The Company also agreed to supplement the substantial changes that it has already implemented in its corporate governance policies and practices. The settlement is subject to the completion of final documentation and preliminary and final approval by the Court.
“We are pleased to have reached this settlement, which represents another important step forward for the Company,” said Strauss Zelnick, Chairman of Take-Two.
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