Shareholder Sues Take-Two

A Take-Two shareholder is suing the company, claiming that the board's rejection of an an undisclosed acquisition offer from EA was motivated by a desire to increase what its executives would be paid if the company were sold.

The lawsuit was filed by Prickett, Jones & Elliott on behalf of Take-Two shareholder Patrick Solomon on Friday in Delaware Chancery Court and names Take-Two Executive Chairman Strauss Zelnick and Chief Executive Benjamin Feder, who are partners of investment company ZelnickMedia.

The suit centers around the Feb. 15 decision to increase ZelnickMedia's management fees and bonuses to $US 16.5 million, from $US 3.8 million, in the event the company were sold.

This comes a day after major shareholders in the company started dumping stock... but to who? And the same day that Take-Two announced a provision for employees if they were to be fired in the case of a buy-out.

Oh strife, strife, strife.

Shareholder sues video game maker [LA Times, thanks Jack]


Be the first to comment on this story!

Trending Stories Right Now