It's a crappy time to be Take-Two interactive.
First, the company's shareholders revolted against their executives. Then the game-maker took a blow from the ESRB, who slapped the dreaded "Adults Only" rating on Manhunt 2. Then the company had to delay the release of Grand Theft Auto 4. But the worst news may be yet to come for the beleagured company.
The Security and Exchange Commission has issued them a "Wells Notice" to let them know there may be an investigation of their past stock activities.
The Wells notice gives Take-Two a chance to respond to the SEC and convince the agency not to file charges.
In the response filing, Take-Two said it expects "to resolve this investigation by means of a settlement rather than a contested litigation of charges ... the 'Wells' call represents a significant step forward towards that resolution."