Take-Two hit with shareholder lawsuit, creates severance plan for employees

by Alexander Sliwinski { Mar 11th 2008 at 4:00PM }

Take-Two is not only fighting off an EA takeover now, but also a shareholder lawsuit alleging the company's management hid the EA buyout to enrich their own bank accounts. The suit lays out that days after Take-Two received the buyout offer from EA, the management approved a significant increase in compensation if a merger or takeover occurred. In terms of dollars, it means that Strauss Zelnick's ZelnickMedia, which currently manages Take-Two, would make out with $16.5 million dollars, up from $3.8 million, if the company is sold.

Securities and Exchange Commission documents also show that Take-Two has created a severance plan for employees who could lose their jobs in a takeover. Employees will receive 1.5 times their salary and a bonus for 18 months. Observers note this is merely a "defensive move" to keep employees focused on their jobs and not looking for other work during the upheaval.

[Thanks to everyone who sent this in]

Tags: law, lawsuit, take-two, zelnick, zelnickmedia

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Reader Comments (Page 1 of 1)

Cyro @ Mar 11th 2008 4:06PM

This is not looking good.

Deck @ Mar 11th 2008 4:12PM

*sigh*

Kassu @ Mar 11th 2008 4:20PM

When shall this madness stop?

It is clear, that EA is the root of all this evil, and really, i can't see why we still put up with this kinda crap.

Gamers, unite, march into battle against the monstrosity that is EA.

rv @ Mar 11th 2008 6:59PM

This isn't about ea, so much, its about management at take two trying to get paid. The stockholders, or owners, don't want them to get this extra money, so they sue because management isnt acting in thier best interests.

joe @ Mar 11th 2008 4:24PM

thanks for not giving me credit for the tip alex

you forgot the best part about the comment from Jack Thompson

sicsided @ Mar 11th 2008 4:27PM

how did you tip about this? its been all over the internet forever.

Curtis the Claw: Brawl Code 1075-0441-3284 @ Mar 11th 2008 4:30PM

You should send them a tip about how Nintendo is making a system with motion controls.

NATO_Duke @ Mar 11th 2008 4:32PM

Way to tease Cutis - how much will it be? Such a device would be, dare I say, a Revolution!

DangerMouse @ Mar 11th 2008 5:13PM

Let's cry about it together.

Curtis the Claw: Brawl Code 1075-0441-3284 @ Mar 11th 2008 6:39PM

@NATO

Well my source tells me it is going to be quite a bit less than the other consoles...The graphics aren't equal to the other systems but the new input method will appeal to casual and hardcore gamers. I've also heard the system will have 99% crappy games.

Catprog @ Mar 12th 2008 1:03AM

@Curtis the Claw

According to metacritic

99% of wii games are under 96 rating
99.5% of 360 games are under 96
100% of ps3 games are under 96

Wii has the least crap games according to you and metacritic.

Curtis the Claw: Brawl Code 1075-0441-3284 @ Mar 13th 2008 1:12AM

I have a Wii and I'm well aware of what is on it, the truth is most of it is crappy shovelware and it's only getting worse.

hart704 @ Mar 11th 2008 5:00PM

Those people don't read much, do they? Take-Two wasn't hiding anything. It was all over the place.

player66 @ Mar 11th 2008 5:30PM

Zelnick is a sleezy, greedy slimeball. Take-Two would have been better off hiring former Enron execs to run their business into the ground. At least they would have taken care of the government payola.

Glenn @ Mar 11th 2008 11:04PM

If it looks like EA will indeed takeover Take 2, then Zelnick should lend money from his company to dismantle take-2 and restore the developers under it's wing to their formerly independent status, that would show EA.

I will be furious if EA takes over Take Two, we should organize a protest if this happens, and a petition.