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Class Action Suit Filed Against Take-Two
Posted by Jordon Baranowski, Apr 17, 2008 18:49

EA’s proposed hostile takeover of Take-Two should not be news to anyone. According to kotaku.com, a shareholder of Take-Two believes that the company is doing an injustice to its shareholders by not accepting the offer and has therefore filed a class-action suit against the company.

Take-Two has done everything in their power to attempt to not allow EA to engulf their company, from avoiding discussions with EA to offering stock that takes three years to fully develop to their board of directors. Take-Two’s tactics have allegedly angered stockholder Michael Maulano enough that he filed suit against the company on April 11th.

Maulano called Take-Two’s handling of the situation a “breach of fiduciary duty” and that he wants "declaratory relief, preliminary and permanent injunctive relief, damages, and reasonable attorneys’ fees and litigation expenses." It is not known whether Maulano is acting alone or if other shareholders are involved with the claim.

Take-Two issued a statement that responded to the suit, saying that the claims “lacked merit,” and that they “intend vigorously to defend against them.” Earlier tonight, Take-Two had its annual investor meeting. Although details have not yet been made public, the proposed EA takeover will obviously be the hot point of debate at the meeting, as both companies surely hope to come closer to a resolution.

Stay tuned to TheGameReviews.com as more information on the EA/Take-Two struggle becomes available.
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