Take Two posts loss, settles lawsuit

The last day of February saw a double whammy of bad news for venerable game publisher Take Two Interactive. First, the company announced a net loss of $14 million in the final quarter of 2006, down from a $19.4 million profit a year before. The loss was exacerbated by $47 million worth of stock backdating charges that were spread out over restatements dating back to 1997.

Then Reuters reported that the publisher had entered into settlement talks in a federal lawsuit surrounding Grand Theft Auto and the Hot Coffee incident. The company has apparently been in discussions since Feb. 16 over allegations that the hidden, mod-accessible content ran afoul of state consumer protection laws.

The good news? Um... Grand Theft Auto IV is still set to come out later this year, so Take Two's fortunes seem likely to turn around eventually. For the time being, though, things probably aren't too jubilant over at Take Two HQ.

[Thanks Jonah]

Read - Settlement talks
Read - Profit statement

This article was originally published on Joystiq.