Take-Two Settles Class Action

[modeps]

Gamasutra (http://www.gamasutra.com/php-bin/news_index.php?story=23078/) has a report up, showing that Take-Two has settled an existing class action lawsuit over their unwillingness to consider Electronic Arts' buyout bid. At the time, EA was offering $26 per share... now Take-Two is valued at $7.77/share.

Grand Theft Auto publisher Take-Two has entered an agreement to settle a class-action lawsuit brought against it by a shareholder regarding Electronic Arts' 2008 takeover bid.

According to a MarketWatch report, the shareholder who filed the March 2008 complaint in Delaware is one Patrick Solomon, who objected to the company's unwillingness to consider EA's longstanding $26 per share offer. EA eventually rescinded the proposed deal after repeated rejections from Take-Two's management.

The settlement reportedly doesn't provide monetary damages to Solomon and the unnumbered class, as Take-Two claims its insurance will cover any legal fees the plaintiff's attorney tries to collect.

Do you think they should have allowed the buyout to take place?

[Exodus]

No.

This Patric Solomon is a small thinker. He doesn't think long term only short. Bioshock 2, Max Payne 3 are on the horizon and they are doing quite well with games like Chinatown Wars for the DS. The stock will rise again and I guarantee you if Bioshock 2 delivers what Bioshock 1 did, this guy will be considered the ass hat of the next shareholders committee who wanted to sell.

[TheBot]

Its probably that low because of the economy and itll go back up. I think the EA take-over would've been a craphead move. I can see it now, T2 people fired, replaced by EA people. Just......no. That doesnt work.

[vallor]

Good on T2. Bad for the fuckstick who sued.

Everyone is down these days and there isn't any thing that says that if the economy were as strong as it was if the T2 share price would exceed the EA offer when BS2 comes out.

If T2 survives this downturn (which it probably will) I think it will be better positioned than if they'd let EA gobble them up and divvy up their IPs while ditching most of the T2 people, particularly those on the publishing side.

[dirtbag]

Its probably that low because of the economy and itll go back up. I think the EA take-over would've been a craphead move. I can see it now, T2 people fired, replaced by EA people. Just......no. That doesnt work.

Totally. The economy is in the crapper, and just about everybody's stock is hurting.

The last thing we need is for T2 to become the next Origin.

[TeeCakes]

Had EA got the takeover deal @$26/share, a LOT of veteran T2 staff would probably be out of a job right now with the economy in recovery mode. I say it was a good call to stick to their guns considering no staff = no games = no future success.

[Johan]

When you're offered $26 a share, turn it down, and see your stock drop to $7.77...you fucked up royally. There's no way around that. Their executives screwed the pooch, just like Yahoo's Yang did, and he had to step down.

Very poor decision. They're supposed to uphold their fiduciary duty to the shareholders. They failed.

[revelation]

Very poor decision. They're supposed to uphold their fiduciary duty to the shareholders. They failed.

Thank goodness, some common sense.

[bjornbarspingvinen]

Come on, all share prices are down due to the "economic state of the world". Do remember that there are elements who benefit alot from inflated economic paranoia. It´s time to buy fools.

Anyhow, stupid solomon and sure he´s pissed about it, he wants profit, but the board is to think longterm and to please the stockholders, but not ignorant stupid ones who are minority holders.