GameStop 2008 Annual Report Download - page 92

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11. Commitments and Contingencies
Contingencies
On February 14, 2005, and as amended, Steve Strickland, as personal representative of the Estate of Arnold
Strickland, deceased, Henry Mealer, as personal representative of the Estate of Ace Mealer, deceased, and Willie
Crump, as personal representative of the Estate of James Crump, deceased, filed a wrongful death lawsuit against
GameStop, Sony, Take-Two Interactive, Rock Star Games and Wal-Mart (collectively, the “Defendants”) and Devin
Moore, alleging that Defendants’ actions in designing, manufacturing, marketing and supplying Defendant Moore
with violent video games were negligent and contributed to Defendant Moore killing Arnold Strickland, Ace
Mealer and James Crump. Moore was found guilty of capital murder in a criminal trial and was sentenced to death in
August 2005.
Plaintiffs’ counsel has named a new expert, a psychologist who testified at the criminal trial on behalf of the
criminal defendant, who will opine (if allowed) that violent video games were a substantial factor in causing the
murders. This same testimony from this same expert was excluded in the criminal trial from the same judge hearing
this case. The testimony of plaintiffs’ psychologist expert was heard by the Court on October 30, 2008, and the
motion to exclude that testimony was argued on December 12, 2008. The ruling on this motion will have an effect
on whether the case is able to proceed. The Company is currently awaiting a ruling. There is no current trial date.
The Company does not believe there is sufficient information to estimate the amount of the possible loss, if any,
resulting from the lawsuit.
In the ordinary course of the Company’s business, the Company is, from time to time, subject to various other
legal proceedings. Management does not believe that any such other legal proceedings, individually or in the
aggregate, will have a material adverse effect on the Company’s financial condition or results of operations.
In 2003, the Company purchased a 51% controlling interest in GameStop Group Limited. Under the terms of
the purchase agreement, the individual owners of the remaining 49% interest have the ability to require the
Company to purchase their remaining shares in incremental percentages at a price to be determined based partially
on the Company’s price to earnings ratio and GameStop Group Limited’s earnings. Shares representing approx-
imately 16% were purchased in June 2008 bringing the Company’s interest in GameStop Group Limited to
approximately 67%. The Company already consolidates the results of GameStop Group Limited; therefore, any
additional amounts acquired will not have a material effect on the Company’s financial statements.
F-25
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)