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."

Comments

Re:That's what you get

[phantomfive]

This wasn't a lawsuit by people upset by the nudity, it was a lawsuit by shareholders, upset that the company had lost money. They felt the whole thing had been poorly managed, and wanted changes. It turns out they were correct, not only was that particular 'scandal' poorly handled, the entire company was being poorly run, they didn't even know how much money they had.

In addition, $15 million will be paid by their insurance company. Though I'll bet their insurance premiums are going up next year.

Re:America's Decline.

[Opportunist]

It might be religion based. When you read the Bible, people usually get punished for fucking but rewarded for killing.