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SEC Launches Investigation Of Game Industry, Acclaim Cited

An investigation by the U.S. Securities and Exchange Commission has been launched into the businesss practices of "game manufacturers".

Game Developer, Staff

July 18, 2003

1 Min Read

The formal, non-public inquiry is called "In the Matter of Certain Video Game Manufacturers", and Acclaim announced today that it is one (and possibly the only) company that the SEC is focusing on. Acclaim issued a statement saying, "we are required to provide to the Commission certain information. We are cooperating fully with the inquiry. It is too soon to determine the impact, if any, of this inquiry on our business, financial condition or results of operations." Last month, Acclaim CEO Gregory Fischbach announced his resignation from the post, following a spate of of class-action lawsuits filed against the company, claiming it engaged in channel-stuffing practices in 2002. The suits also allege that company executives mislead investors about "the development, content, cost, distribution and sales of products and that the declining demand for Acclaim's products."

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