Man, when it rains it pours.

Take-Two Interactive filed their annual report today with the U.S. Securities and Exchange Commission. Most of the stuff in the report talks about things we already reported on following their earnings reports released in October. But the report does have an update on the company s legal proceedings, and it s a doozy of an update.

From the report:

In January 2006, the City Attorney for the City of Los Angeles filed a complaint against the company and its subsidiary, Rockstar Games, in the Superior Court of the State of California. The complaint alleges that the company and Rockstar violated sections of the California Business and Professions Code prohibiting untrue and misleading statements and unfair competition and that the company and Rockstar were unjustly enriched as a result of the alleged failure to disclose that Grand Theft Auto: San Andreas contained hidden content which should have resulted in the game receiving an Adults Only ( AO ) rating from the ESRB rather than a Mature ( M ) rating. The complaint also alleges that we made misleading statements as to the origin of the hidden content. The complaint seeks injunctive relief, restitution for purchasers of the game and civil fines. We believe that the allegations in the City Attorney s complaint are without merit, and intend to vigorously defend against these claims. We have also received requests for documents and information from the Attorneys General of the States of North Carolina and Connecticut relating to Grand Theft Auto: San Andreas.

So, to summarize, the company is going to fight the L.A. suit and both North Carolina and Connecticut seem to be lining up for similar, state-level suits.

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