Take-Two (TTWO) got a reprieve today, but it doesn’t have anything to do with EA (ERTS).
A judge threw out parts of a 2006 lawsuit brought by shareholders who said that the company misled them about the sexual content of Grand Theft Auto: San Andreas. That would be the infamous “hot coffee” mod, inserted by a mischevious developer: As we recall, if you did x, y, z, you got to see simulated cybersex.
Shareholders argued that the scandal beat up TTWO shares and that somehow they should get paid because of it, but U.S. District Court judge correctly declared that theory to be B.S. She did, however, allow the shareholders to move forward on the other part of the lawsuit, connected to an options backdating scandal engineered by TTWO’s previous managers.
But somehow, we don’t think that the current management is celebrating this development too much — they have other things on their minds.
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