Poor old Take-Two is facing yet more legal action - two new class-action lawsuits have been launched, alleging fraudulent activity and insider trading.
According to Reuters, lawyers from Stull, Stull & Brody and Millberg Weiss claim that Take-Two engaged in fraudulent and illegal conduct during the class period so that insiders could sell more than 661,000 shares - earning proceeds of more than $18 million.
Both lawsuits allege similar insider trading activities and dubious managerial activity, and both law firms are seeking to contact people who owned Take-Two shares between October 25th, 2004 and January 27th this year. January 27th was the date that LA's city attorney sued Take-Two, alleging that the company knowingly withheld information about the Hot Coffee mini-game.
The new lawsuits will put yet more pressure on Take-Two, which is already facing allegations of accounting irregularities, executive mismanagement, non-disclosure of pertinent and potentially damaging information and insider dealing. To make matters worse, the company's recent SEC filing hinted that further legal action was yet to come. They'd best hire Matlock sharpish.