An internal probe at Take-Two Interactive Software found that some stock-option grants were incorrectly dated.
December 11, 2006 (Press Release) --
The publisher of the best-selling Grand Theft Auto video game franchise said its financial statements from 1997 through April 30, 2006, should no longer be relied on.
The company said it plans to record noncash charges for compensation expense relating to the grants.
The improprieties were discovered during an investigation by a special committee of its board. The probe did not find misconduct by the company's current executive officers, including Chief Executive Paul Eibeler and Chief Financial Officer Karl Winters, Take-Two said.
Stock option grants have come under the scrutiny of federal securities regulators and the U.S. Department of Justice. Some 160 companies, including Apple Computer, Quest Software, Brocade Communications Systems and CNET Networks (publisher of News.com), have been investigated or are conducting inquiries themselves.
Take-Two said it has delayed the filing of its fiscal third-quarter 10-Q.
The company said its special committee will prepare a final report detailing its findings and make recommendations for remedial actions.
Shares of Take-Two were down 27 cents, or 1.4 percent, to $19.83 in morning trade on Nasdaq.
Take-Two paid $7.5 million to settle a U.S. Securities and Exchange Commission lawsuit in 2005. The SEC alleged the company had overstated financial results from 2000 to 2001.
The company said it plans to record noncash charges for compensation expense relating to the grants.
The improprieties were discovered during an investigation by a special committee of its board. The probe did not find misconduct by the company's current executive officers, including Chief Executive Paul Eibeler and Chief Financial Officer Karl Winters, Take-Two said.
Stock option grants have come under the scrutiny of federal securities regulators and the U.S. Department of Justice. Some 160 companies, including Apple Computer, Quest Software, Brocade Communications Systems and CNET Networks (publisher of News.com), have been investigated or are conducting inquiries themselves.
Take-Two said it has delayed the filing of its fiscal third-quarter 10-Q.
The company said its special committee will prepare a final report detailing its findings and make recommendations for remedial actions.
Shares of Take-Two were down 27 cents, or 1.4 percent, to $19.83 in morning trade on Nasdaq.
Take-Two paid $7.5 million to settle a U.S. Securities and Exchange Commission lawsuit in 2005. The SEC alleged the company had overstated financial results from 2000 to 2001.
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