Take-Two and the SEC
Here's a note from Herb Greenberg of Marketwatch about the SEC and Take-Two:Take-Two (ttwo) disclosed at the bottom of an 8-K today that an informal probe by the SEC, originally just about stock options, has turned formal. The company originally disclosed the informal probe last July. This time, the company says it was advised on March 15 that it had received the formal order, "which allows the SEC, among other things, to subpoena witnesses" in connection with the options debacle. Key phrase there is "among other things," which suggests this extends beyond options.
...It's unclear why the company waited until now to disclose the formal probe, which was known to Take-Two officials before and during the company's recent annual meeting, which included a shareholder coup that led to the ouster of CEO Paul Eibeler.
Full story is here.That may not sound like much of a difference, but it's a big, big deal. The difference in an "informal" and "formal" investigation by the SEC, particularly when the scope of the investigation is apparently extended, can be the difference between getting your teeth cleaned and having a wisdom tooth extraction.
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