An investigation into Take-Two Interactive’s stock options grants has uncovered problems with stock issuing and financial statements.
Earlier this year, a committee comprised of three independent Take-Two board members, three legal consultant groups and the SEC began an investigation into the company’s issuing of stock options grants.
The committee announced that they have uncovered “improprieties in the process of granting and documenting stock options and that incorrect measurement dates for certain stock option grants were used for financial accounting purposes.” Due to the questionable dating of the stock options, Take-Two has announced that financial records from 1997 until April 30th of this year will be restated at a later meeting. Nobody within top management has been blamed for the options backdating.
Take-Two Interactive Software (TTWO) shares dropped two percent following the announcement. Despite delisting warnings from the Nasdaq Listing Qualifications Panel and the ongoing investigations, shares of Take-Two have doubled since July due to large purchases from corporate raider Carl Icahn and large holiday shopping season featuring new console launches.
Source: TheStreet.com
