BALA CYNWYD, Pa., Feb. 11, 2002 (PRIMEZONE) -- Shareholders of Take-Two Interactive Software, Inc. ("Take-Two" or the "Company") (Nasdaq:TTWO) who desire to serve as a lead plaintiff in a shareholder class action lawsuit, now pending in federal court in New York, must submit an application with the Court by February 18, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Take-Two Interactive Software Inc. securities between February 24, 2000 through December 17, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Take-Two Interactive Software Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the New York-based Take-Two Interactive Software Inc. issued a series of materially false and misleading statements 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 purchased Take-Two Interactive Software, Inc. securities between February 24, 2000 through December 17, 2001, you may be a member of the class and have until February 18, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca