LITTLE ROCK, Ark., Jan. 23, 2002 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP ("CGBC") announced today that Take-Two Interactive Software, Inc. ("Take-Two" or the "Company") issued a press release announcing that it is postponing the release of its fourth quarter and fiscal year end 2001 financial results indefinitely, due to the lack of cooperation by its auditors. Failing to do so has caused the halt in all trading of the companies stock. This information comes soon after CGBC announced that it had filed a complaint in the United States District Court for the Southern District of New York on behalf of purchasers of Take-Two Interactive Software, Inc. ("Take-Two" or the "Company") (Nasdaq:TTWO) publicly traded securities during the period between February 24, 2000 and December 17, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website at http://www.classlawyer.com/pr/take_two.pdf.
The complaint charges Take-Two and certain of its officers and directors with issuing a series of material misrepresentations to the market between February 24, 2000 and December 17, 2001, concerning its financial performance for the Company's fiscal year 2000 and the first three quarters of Take-Two's fiscal year 2001. Throughout the Class Period, defendants issued press releases reporting Take-Two's quarterly and year-end financial performance, and filed reports confirming such performance with the United States Securities and Exchange Commission (the "SEC"). These reports positively portrayed Take-Two's performance during the Class Period and discussed several quarters of supposedly "record" results. These statements, as alleged in the complaint, were materially false and misleading because the Company had, throughout the Class Period, improperly recognized revenues, thereby inflating its reported sales and earnings. On December 14, 2001, the price of Take-Two's stock plunged 31%, falling from $15.05 to $10.33, as news leaked that the Company will likely restate previously filed financial reports. On December 17, 2001 Take-Two issued a press release announcing that the Company will restate its financial results for its fiscal year 2000 and the first three quarters of its fiscal year 2001. According to the press release, the Company had improperly recognized revenue on products that were subsequently returned to the Company. For fiscal year 2000, the restatement will have the effect of decreasing net sales by $12-15 million and decreasing net income by $3.1-$3.7 million. For the three quarters of 2001, the restatement will have the effect of decreasing net sales by approximately $9.5 million and increasing net income by $0.3 million.
If you bought Take-Two publicly traded securities between February 24, 2000 and December 17, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than February 18, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca