Shares of Take-Two Interactive Software Inc. have dropped nearly 18% after investors were spooked by a Banc of America securities report suggesting the company is burning cash at an "alarming" rate, cumulative delays in getting new products to market, and the resignation of board member Barbara Kaczynski on Wednesday, according to CNN.
- Running out of cash? Shares downgraded to "Sell" by Banc of America Securities analysts who believe each share is worth $12, not $17.00. Their primary concern: the company is burning through cash too quickly. More details here.
- New California lawsuit: The California State Attorney General today launched a lawsuit against Take-Two alleging that the company hid pornographic material inside Grand Theft Auto: San Andreas. (Did the company knowingly hide this material in GTA:SA, or was it an accidental oversight?) More details here.
- Board member resignation. Board member Barbara Kaczynski resigned because she felt that the company's management failed to keep the board informed about important issues with the company. She filed a doozy of a resignation letter with the SEC.
[Image from finance.yahoo.com]
[Update 1: added additional information throughout]