Struggling to stay afloat, Take-Two decided to ship Grand Theft Auto: San Andreas with a sex scene in the game and later lied to investors to cover up their decision, according to the suit settled today.
The 2006 suit, which was tentatively settled for $20 million, also alleges that company officers earned more than $18 million in insider trading even as the company's stock plummeted.
"As a result of the disclosures of the Company's true financial condition, its stock ratings have been slashed," the suit, initially filed by John Fenninger who purchased Take-Two common stock, states. "Moreover, the Company is exposed to class action lawsuits and regulatory enforcement actions brought by the Attorney Generals of several states. While the public investors lost over one billion dollars in market capitalization, the Individual Defendants pocketed over $18 million in insider trading proceeds."
