Take Two investor sues over EA bid rejection

Thursday, 17th April 2008 at 9:04 pm

Class action suit filed by shareholder who believes refusal to accept offer was unlawful

According to Kotaku, a Take Two shareholder has filed a class action suit alleging that the circumstances surrounding the publisher’s refusal to sell to Electronic Arts were fiscally irresponsible.

Take-Two disclosed the news in a filing to the Securities Exchange Commission. The stockholder, Michael Maulano, filed the complaint on April 11th against Take-Two and its eight-member Board in the Supreme Court of the State of New York, where the publisher has its HQ.

Maulano calls Take-Two's tactics a ‘breach of fiduciary duty’, and alleges that Take-Two's responses to EA's offer - which came in at $26 per share - contained ‘misleading and incomplete’ information.

Maulano is claiming 'declaratory relief, preliminary and permanent injunctive relief, damages, and reasonable attorneys' fees and litigation expenses'.

It is unclear how many other Take Two investors, if any, are part of Maulano's class action suit.

Take-Two said in its disclosure: 'The Company and its Board of Directors believe these claims lack merit, and intend vigorously to defend against them.'

The 'cat and mouse' financial game that has been taking place between EA and Take Two is set to be concluded this week, beginning with the latter’s annual shareholder meeting in New York today, at 6pm NY time (tomorrow morning UK time) – a day before EA’s bid expires.

http://www.mcvuk.com/news/30231/Take-Two-shareholder-sues-over-EA-bid-rejection