 In November 2010, the U.S. Securities and Exchange Commission (SEC) issued cease and desist orders against Phillips, Mroz, and SouthPeak Games for submitting incorrect SEC filings, which SouthPeak Games later stated to have been an error.After net losses of and in the first and second quarters of the company's fiscal year 2011, respectively, SouthPeak Games was delisted from the New York Stock Exchange in September 2011.On July 12, 2011, SouthPeak Games opened a new digital distribution subsidiary, 7Sixty LLC, in Grapevine, Texas.