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Take-Two Settles With Critic

The video-games publisher calls a truce with John Thompson

Updated from April 19

Video-game publisher

Take-Two Interactive

(TTWO) - Get Take-Two Interactive Software, Inc. Report

has finally called a truce in its battle with long-time critic John "Jack" Thompson.

The company's

new management settled a lawsuit with Thompson, effectively muting criticism and public outbursts from a man who has long been a vocal detractor of its games for allegedly violent and racy content.

Thompson and Take-Two share a history going back at least four years, with Thompson filing or threatening to file lawsuits against the company and its games.

In his latest move, Thompson had been agitating in Florida to restrict sales of the company's upcoming video games, such as

Grand Theft Auto 4


Manhunt 2

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, from being sold to minors.

Take-Two countered this with its own

lawsuit last month suggesting that Thompson's effort to block sales of its games violated the company's First Amendment rights.

Now, as part of the settlement filed in the U.S. District Court for the Southern District of Florida, Thompson has agreed not to restrict sales through any court worldwide of Take-Two's games or to threaten to sue the company.

He has also agreed not to accuse Take-Two of any wrongdoing based on the sale of any of its games.

"The agreement does not provide that I not be critical of the company and of its game releases," Thompson said Friday, clarifying his position. "All it says is that I have agreed not to sue to try to stop the release of games nor to contact retailers to try to get them not to sell."

Shares of Take-Two closed Thursday's regular session off 13 cents to $20.02.

Thompson, himself a lawyer, had in the past regularly sent email and letters railing against Take-Two to everyone from the Federal Communications Commission to different attorneys associated with the company.

He claims to have prepped Sen. Hillary Clinton in her press conference where she called for legislation against sales of video games to minors after racy content was discovered hidden in its 2004 game

Grand Theft Auto: San Andreas


Though Thompson has put on a brave front and suggested that the settlement will not end his litigation efforts, it is likely to mute his public pronouncements and lawsuits against the company -- a plus for Take-Two on its

road to recovery