SHP-2 is an intracellular SH2 domain-containing protein-tyrosine phosphatas
e with an essential role in cell signaling. Here we demonstrate that locali
zation of SHP-2 is regulated by cell density in a cell adhesion-dependent m
anner. When cells were plated at low densities, SHP-2 was distributed in Tr
iton X-100-insoluble fractions, whereas it was totally soluble when cells w
ere plated at high densities or when low density cells approached confluenc
y. In all cases, the total protein level of SHP-2 was not changed. Fluoresc
ent cell staining revealed that SHP-2 was co-localized with actin stress fi
bers to the cell peripheral at low cell densities but was diffused in the e
ntire cytoplasm at high cell densities. Transient transfection of cells wit
h truncated forms of SHP-2 demonstrated that the catalytic domain of the en
zyme was responsible for the density-regulated distribution of SHP-2, but t
he catalytic activity was not required. An in vitro co-sedimentation study
demonstrated direct binding of full-length and SH2 domain-truncated forms o
f SHP-2 to F-actin. The data indicate that SHP-2 is regulated by cell densi
ty and that it may have a role in assembling and disassembling of the actin
network.