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Stockholder Sues Take-Two Over EA Takeover Bid

Apr 17, 2008 12:54pm CST tags: Take-Two, Electronic Arts, Buyout
Take-Two's SEC filings revealed that a shareholder filed a class action complaint against the company for its response to a takeover bid by publisher Electronic Arts, Kotaku reports.

The suit, filed by Micheal Maulano on April 11, alleges that Take Two's responses to EA's buyout bid contained "misleading and incomplete" information, and that Take-Two's tactics constitute a breach of fiduciary duty.

In the suit, Maulano demands "declaratory relief, preliminary and permanent injunctive relief, damages, and reasonable attorneys' fees and litigation expenses." The report notes that it is unclear how many other shareholders are part of the class action suit.

Take-Two said in its disclosure that the claims lack merit, and that the company "intend[s] vigorously to defend against them."

Last month, EA attempted a hostile takeover of Take-Two—owner of such properties as Grand Theft Auto, Max Payne, and BioShock—by offering to purchase stock from shareholders at $26 per share.

Take-Two recommended that its shareholders reject the deal, suggesting that EA sought to capitalize on the April 29 release of Rockstar's Grand Theft Auto IV (PS3, X360).

                                                          

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