Take-Two Faces $20 Million Settlement For "Hot Coffee" Scandal
eldavojohn writes "Take-Two has settled with shareholders to the tune of $20 million dollars over the 'Hot Coffee' debacle. Ars brings the details on how a badly-handled situation resulted in shareholders suing Take-Two. '[The scandal] led to a media panic because it was assumed the sexual content was easy for children to get to (it wasn't) or that sex themes were becoming common in games (they aren't). Still, the lawsuit shows how badly the company bungled the situation, and it's easy to see how Take-Two's management directly caused shareholders to lose money. ... The suit alleged far more than a single misstep with Hot Coffee, however. "Take-Two's management was not cooperating or assisting with the Company's audit committee and was failing to keep the Board of Directors informed of important issues or failing to do so in a timely fashion," the complaint stated. Inventory was misstated, as was software development costs."
for having shareholders. Raising capital is a necessary evil, but hell, grow organically if you can.
How we know is more important than what we know.
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Isn't that basically suing yourself. How can anyone but the lawyers gain anything?
Pretty much.
Its the corporate equivalent of a "swear jar". When you do let one slip out in front of the kids you put in $20M and it eventually pays for you to go on vacation someplace tropical.
The more you swear the more baddass you appear and the more you are penalized.
The more you are penalized the more you are punished and the more responsible for your actions you appear.
The more you are punished, the sooner you can go on vacation.
Its really a win-win situation.
Shareholders suing their corporation over hot coffee has the same effect.
They:
a) get to have sex scandals (baddass & fun)
b) get to appear to be making right (responsible & disciplined)
c) get to go on vacation as a result (wooo hoo!)
How is this even possible? No matter how badly Take-Two screwed up, the fact is, the game had to be hacked to get it to work! Regardless, who cares? Why are Americans so hung up on these type of issues, such as wardrobe malfunctions, gay marriage, steroids in baseball? In the meantime, bankers have effectively stolen trillions of dollars directly out of the pockets of every American. Less and less people are able to afford health care. Thousands of Americans are needlessly dying in Iraq. Middle class jobs are being decimated. The list is long... America is screwed.
I was wondering that myself. The only thing I can think is that maybe the suit was to get money out of the insurance company. I still don't know why anyone would insure against something like that. The suit would have made more sense to me if it had been to recover money from the personal funds of the former CEO.
I still can't believe Rockstar had a mandatory recall on a game where you play a criminal, and the games primary objectives including assisinations, pimping, thieving and selling dugs because a third party patch enabled clothed sex scenes. Its almost so daft that I can't believe it. All this uproar over something that everyone does, in a game that glorifies acts thats are illegal almost everywhere and seen as unacceptable by almost everyone on this planet.
At least no matter what happens you win ... until you realize you lost more than you won.
That being the case, it seems an easy strategy for corporations to make money for their investors would be to intentionally mismanage the company. So that the shareholders can sue the company they own and the insurance pays out.
They get to pay dividends and call it an expense? Sounds like a smart tax move.
---- Sig. gone.
I expect that in this case it's those who were shareholders in 2006 suing the company, who are likely no longer shareholders. In that case it's fairly reasonable. Say someone bought stock in 2005 and then sold it in 2006 when shit hit the fan for a substantial loss. That person can now recoup some of the their losses.
Also Take Two had some sort of crazy umbrella insurance (how do you get "our directors are incompetent" insurance?) so the insurance company is ponying up $15M of the $20M.
I wonder if I could manage to pull this off at a personal level. Get an umbrella insurance policy. Crash my car into a tree. Sue myself(defendant) for the pain and suffering caused due to the negligence of myself(plaintiff). If I(plaintiff) win, I(defendant) get the insurance company to cover 3/4ths of the settlement cost.
I was wondering exactly the same thing.
Some discussion of the topic revealed the only logical solution:
Pure greed. People that don't care about the company and are only interested in getting some quick money out of their investment.
Only in america there can be an uproar about sexual content when most games in existence is about killing people. Wtf is wrong with you people? Its ok to kill and mame people without any reason but its not ok when two consenting adults have sex?
Something is fundamentally and utterly broken in the US. The same people who shouts for unborn childrens rights to life cry in pain when someone wants to supply them with medicare once they are born.
Stupid fucks.
HTTP/1.1 400
This is what you get in any fundamentalist country.
I mean, in what sense aren't the shareholders suing themselves, thereby achieving little more than moving a portion of the money into some lawyers pockets?
Boffoonery - downloadable Comedy Benefit for Bletchley Park
So, does this make it the most expensive coffee in the world?
The idea of recalling the game is to give a message to kids:
Do not dare to play a video game where you simulate making love with a woman, GO OUT AND DO IT!!.
Ubuntu is an African word meaning 'I can't configure Debian'
You can show a man plunge a knife into a woman on television but god help you if you want to show him using a penis instead.
Our society is a contradiction wrapped inside a hangup buried beneath a shitpile of hypocrisy. It's weird how we can have sex turned up to 11 to sell us shit on the tee-vee but actually showing it in a healthy manner is still verboten. I think it's the repression pushing down on society as a whole that has the prurient parts squeezing out the sides in such a disturbing manner. People get all horny and frustrated because pop culture is steeped in sex but trying to find a simple goddamn human connection in meatspace is an exercise in frustration. I suppose it's good for the economy. Angry and frustrated people usually go and buy something to make themselves feel better.
Islamic societies are also known for their contradictions. It's still considered awesome for the man to get his wick dipped but any woman who does the same is a slut who should be put to death. Homosexuality is a crime worthy of death but the old ruling powers in the Middle East had their tradition of the catamite and there's a folk hero in Persian folklore I believe known for for always having his jug of wine and his boy close at hand.
Kwisatz Haderach
Sell the spice to CHOAM
This Mahdi took Shaddam's Throne
"If God wanted us to be naked, we'd be born that way." - Oscar Wilde
Presumably a prude who objects even to simple nudity must have had a mother who kept her pants on through the entire birth, and insisted on the baby closing its eyes before being allowed to suckle her breast.
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
They should just pay the $20 million out of their marketing budget. This episode has gained them at least that much in publicity.
A normal person upon seeing violence doesn't want to participate in violence. But, after seeing an extended scene of people having sex...
Lot and his daughters took shelter in a cave. Believing they were the last of their people, his daughters got him drunk and had sex with him in the hopes of being impregnated, for which they are praised. They don't cover this material in church real often, for a variety of obvious reasons.
Before Christianity, sex was a form of communion with the divine. Christianity made it a low thing, to be done only in the service of The Lord. The extent to which this is true varies between sects, but reaches something of a peak in Catholicism.
Another thing common before Christianity was incest. It was especially used as a means of keeping control of property in a family, or keeping control of a royal line. Obviously there are numerous problems with the practice, and so it was probably a darn good thing that The Church came with an incest taboo — another reason you're not going to hear this story in church, at least not without a whole lot of spin from how it is presented in the text.
Troll? Fail.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Its for the children... ok fine, its actually for our wallets! But still, think of the children?!
"They confiscated everything, even the stuff we didn't steal!"
Then why wasn't Watchmen movie not rated NC-17 for the blue penis? :P
Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
Isn't that kinda like suing yourself? Who owns Take-Two?
You'd still be out 1/4 of the cost, plus the fees for two lawyers... And the contempt fines you'll get for running back and forth between tables in the court room, arguing with yourself.
I'm pretty sure Take Two is doing just fine, even considering this.
Think again.
Take-Two Interactive Software Inc. said Tuesday that it swung to a loss for its third fiscal quarter as video-game sales fell sharply from the year-ago period, which benefited from the company's blockbuster "Grand Theft Auto" franchise.
For the period ended July 31, Take-Two reported a net loss of $55.5 million, or 72 cents a share, compared with earnings of $51.8 million, or 67 cents a share, for the same period last year.
Revenue fell 68% to $138.6 million.
Take-Two Interactive swings to a loss for third quarter
[Sept 1]
There is nothing much new or exciting in the pipeline. Borderlands
God of war 1 and 2 were both rated the same as GTA: SA in the US that is M for Mature.
God of war 1 and 2 both had sex minigames with nudity leading up to them that you didn't need to hack your system to view/play.
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