This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

SEC Begins Inquiry into Take-Two's Options

Take-Two Interactive (TTWO - Get Report) is facing another inquiry by the Securities and Exchange Commission, this time over its stock-options grants.

The video-game software maker disclosed on Monday that the SEC has launched an informal investigation into its grants dating back to 1997. The company did not say what prompted the SEC's inquiry or what the regulator was investigating.

"The company intends to respond to the SEC's information request and to fully cooperate in the informal investigation," the company said in the statement.

A Take-Two representative declined to comment on whether the SEC's inquiry related to allegations of the backdating of options. More than 50 other public companies are being investigated by the SEC and other regulators over charges that they handed out options to executives and employees at extraordinarily low exercise prices that were known after the fact.

The SEC's inquiry follows Take-Two's own internal review of its stock-options grants, the company said in a statement. A committee of three of the company's independent directors has hired an unnamed independent lawyer and accountants to help with that investigation, which is still ongoing, a company representative said.

The Take-Two representative declined to comment on whether the internal review is looking into the issue of whether any of the company's options grants were backdated. But the company initiated the review after seeing other companies conduct their own reviews as part of the backdating scandal, the representative said.

"The board is aware that this is an issue to investors generally," the representative said.

Take-Two stock fell more than 5% on the news, which comes just two weeks after the company announced that it had been subpoenaed by the New York County district attorney. That investigation is apparently a much broader one than the SEC's, involving the hidden explicit "Hot Coffee" sex scenes in its Grand Theft Auto: San Andreas game and the termination of its auditors, among other things.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
TTWO $26.49 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%
TSLA $203.34 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs