GTA 6 Publisher Take-Two in Spotlight as CEO Strauss Zelnick Faces Harassment and Fraud Allegations — Here's What the Documents Show

The publisher behind the forthcoming Grand Theft Auto VI is facing controversy beyond the gaming world. Take-Two Interactive's chief executive Strauss Zelnick has been named in a civil case in Los Angeles alleging harassment and financial misconduct connected to an investment partnership.

The case was filed in August 2024 by investor Steven Marks and his company, Marks Capital Inc., against Zelnick and a business entity listed as B&C Retail Ventures LLC, initially identified in filings as Kairos Industries. The plaintiffs claim that a business arrangement intended to acquire another firm was misused and that Zelnick engaged in inappropriate personal behaviour during the professional relationship.

None of the allegations have been proven in court. Nevertheless, the claims have drawn attention from investors and industry observers as Take-Two prepares for what is expected to be one of the most lucrative game releases in recent years with Grand Theft Auto VI, currently scheduled for 2026.

Allegations Detailed in Court Filings

According to court documents, the plaintiffs allege that Zelnick used mentoring sessions and business meetings to exert personal and professional influence. The complaint cites inappropriate messages, uninvited physical contact, and retaliatory actions when advances were rejected.

The legal filings also describe a dispute over business assets. Marks Capital exchanged equity for a 50 per cent share of Kairos Industries, while Zelnick was to invest cash and control the remaining half. The plaintiffs claim that, following disagreements, Zelnick froze their access to assets and removed them from the venture. Together, these allegations underpin claims of both harassment and fraud within what began as an investment partnership.

Zelnick has not publicly commented on the specifics of the case. Take-Two has stated that it does not discuss ongoing legal matters.

Company Record and Industry Scrutiny

Take-Two has historically maintained a public stance of zero tolerance for harassment. Zelnick himself said in 2021 that the company 'will not tolerate harassment or discrimination or bad behaviour of any kind. We never have', according to VGC.

However, the release of these court documents has prompted renewed scrutiny of the CEO and, by extension, the publisher. Within the gaming industry, which has faced heightened attention over workplace culture, internal conduct, and investor-risk management, Take-Two's corporate governance and workplace practices may now face fresh examination.

The controversy emerges as the company seeks to maintain investor confidence ahead of Grand Theft Auto VI's planned release. Analysts note that high-profile leadership disputes, even when unproven, can influence staff morale, recruitment, and perceptions of governance.

Ongoing Legal Proceedings

A first amended complaint filed in September 2024 expanded the claims to include sexual harassment, intentional infliction of emotional distress, unfair business practices, and wrongful termination. In February 2025, the court granted a motion to stay the proceedings pending arbitration. Plaintiffs subsequently filed a motion for reconsideration, which remains under review.

A status conference is scheduled for 20 November 2025 at the Stanley Mosk Courthouse in Los Angeles. Because the case is civil and partly anonymised, details remain limited, but the filings confirm an active dispute that is likely to remain under close observation.

The outcome may have implications for Take-Two's governance and reputation as it approaches one of the most anticipated game releases in recent years, underlining the intersection of corporate leadership and high-stakes entertainment publishing.