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More Financial, Legal Woes For Take-Two

The controversy raging over Bully is far from the only worry for Take-Two Interactive these days.

As reported by the New York Times and other news outlets, the beleaguered game publisher revealed late yesterday that it had received additional grand jury subpoenas from the office of Manhattan District Attorney Robert Morgenthau. The investigation apparently focuses on the company's financial dealings.

Take-Two, which received earlier subpoenas from Morgenthau's office in June, also announced it would delay a third-quarter earnings report while it addressed an internal review of how stock options were granted. Like a number of other publicly-traded companies, including game publishers Activision and THQ, the manner in which Take-Two dated employee options is under review by the Securities and Exchange Commission (SEC).

During a conference call with business analysts, Take-Two officials said profits would be less than expected. In after-hours trading, the company's stock price (NASDAQ: TTWO) gave back more than eight percent of its value, closing at $11.20.

"The outstanding story for them is about lack of credibility and trust," Mike Hickey, an analyst with Janco Partners, told the NYT. "This doesn't make that go away."

Tags: mike hikey, robert morgenthau, sec, take-two interactive
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