Take-Two faces further class-action lawsuits

The intricate web of litigation against software publisher Take-Two just got a little stickier with news of two new class-action lawsuits accusing the firm of fraudulent activity and insider trading.

Law firms Stull, Stull & Brody and Milberg Weiss announced the class-action lawsuits, both of which allege similar insider trading activities and dubious managerial activity, adding to the existing slew of litigation against both the publisher and its executive management team.

According to Reuters, Milberg Weiss alleges that Take-Two engaged in fraudulent and illegal conduct during the class period so that insiders could sell more than 661,000 shares for proceeds of more than USD 18 million.

Both firms are seeking people who owned Take-Two shares between October 25, 2004 and January 27, 2006, the period from the launch of Grand Theft Auto: San Andreas to the day that Los Angeles' city attorney sued Take-Two for knowingly withholding information regarding adult content hidden in the game.

The latest legal action follows several previously filed lawsuits, focusing on the Hot Coffee scandal and swiftly followed by various charges of accounting irregularities, executive mismanagement, non-disclosure of pertinent and potentially damaging information and insider dealing. The company's recent SEC filing had hinted at possible further legal action, and it is likely that even more is yet to come.