Take Two takes a breather.

Plaintiffs in the shareholder class action litigation against Take Two (of Grand Theft Auto notoriety) lost one of their most interesting arguments when the trial court dismissed their cause of action claiming that Take Two had mislead shareholders by allowing the "hot coffee" mod to be inserted into the game. As the mod was never authorized by Take Two, it was always a bit hard to see how shareholders should be compensated for the act...regardless of its impact on share price. The causes of action related to option backdating remain...not that Take Two has any paucity of concerns. The latest twist in the hostile takeover bid by Electronic Arts concerns the Take Two shareholder meeting next week, at which only shareholders as of February 19, 2008 will be entitled to vote. Analysts estimate that 50-70% of the stock of Take Two has been traded since that date, meaning that new shareholders will be subject to decisions taken by a minority of the holders of the company's stock.