The Securities and Exchange Commission is thinking of filing charges against Take-Two Interactive in connection to the company's stock option practices. The former CEO and chairman of Take-Two pled guilty in February to "first-degree falsification of business records" for backdating stock options in an illegal manner and was ordered to pay a restitution of $US7.2 million; in July, two more senior executives pleaded guilty in connection with the same stock options shenanigans. Take-Two received a "Wells" call from the SEC's enforcement division, notifying them the division will be asking the Commission to file charges. Whoops:
Take-Two said it received a "Wells" call last Thursday from the staff of the SEC's enforcement division. The staff plans to ask the Commission to file charges related to its investigation into the company's stock options practices and seek a civil monetary penalty.
Take-Two said it is cooperating with the SEC and expects to resolve the investigation through a settlement rather than litigation.
We'll see what the SEC has to say about that.