Los Angeles sues over 'Grand Theft Auto' game

The city of Los Angeles has sued Take-Two Interactive Software Inc. (Nasdaq:TTWO - news) for selling pornographic video games to children with its best-selling game 'Grand Theft Auto: San Andreas,' which last year was found to have hidden sex scenes.

Shares of Take-Two plunged 13.7 percent to $14.69 on the Nasdaq -- a level unseen since 2003 -- after an analyst downgraded its shares to 'sell' from 'neutral,' citing a variety of financial, operational and management risks.

Los Angeles City Attorney Rockard Delgadillo, in the suit filed on Thursday, accused the game publisher of failing to disclose the pornographic content to get the game onto shelves of major retailers that do not carry games rated 'Adults Only 18+.'"

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