A $20 million dollar settlement brings a close to a class action lawsuit brought against Take-Two by its investors. The company will pay $4.9 million itself, and insurance will cover the rest.
Investors had alleged their investments in the publisher were damaged by the scandal around the infamous hidden 'Hot Coffee' modification in
Grand Theft Auto: San Andreas, over which Take-Two
settled with consumers in 2007.
This new class action suit also relates to Take-Two's
stock option grant investigation, which has already resulted in
settlements to government agencies.
Take-Two says it's made changes to its management procedures and will continue to do so, to ensure problems like these do not crop up again. It also says that it has fully accrued the costs of the settlement over several financial quarters, ending April 30, 2009.
In an investor call today, Take-Two chairman Strauss Zelnick stated simply: "We're pleased to have reached this settlement and put this historical matter behind us."
