Take-Two Interactive Facing Probe

It looks like the government isn't done dealing with Take-Two Interactive just yet. The game publisher announced today that it has recently received subpoenas issued by the District Attorney of the County of New York. The subpoenas requested documents related to "the knowledge of the Company's officers and directors regarding the creation, inclusion and programming of hidden scenes (commonly referred to as 'hot coffee') in Grand Theft Auto: San Andreas, the submission of Grand Theft Auto: San Andreas to the Entertainment Software Rating Board for a rating, and the Company's disclosures regarding hot coffee."

Other documents requested include those regarding compensations made to Take-Two Interactive's executives, acquisitions made by Take-Two Interactive in 2005, its relationship with PricewaterhouseCoopers LLP, and the termination of the same relationship. Details about the company's association with Earnst & Young LLP and earnings results are also being asked for. According to Reuters, shares in Take-Two Interactive's stock dropped twenty percent after today's announcement was made. The company pointed out that it has been "fully cooperating and is providing the requested documents."

Not too long ago, Take-Two Interactive settled a complaint with the Federal Trade Commission. However, many felt that the penalties given to Take-Two Interactive by the FTC were too light. Last year the Securities and Exchange Commission closed an investigation into Take-Two Interactive after the company paid a $7.5 million settlement.

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