THQ Under Investigation Over UDraw Fiasco
If THQ thought that hiring a new president, laying off staff, and focusing only on “core” properties would guide them safely through their financial tumult, they better think again. A post on Gamasutra yesterday reports that the company is under investigation from a Georgia law firm over claims it made to investors regarding the uDraw tablet device that’s been blamed in large part for its recent monetary meltdown.
According to the post, the firm, Holzer Holzer & Fistel, LLC, is looking to figure out whether or not THQ withheld information about lack of demand for the PS3 and Xbox 360 versions of the accessory, citing the different kind of user-base for those systems versus the one for the Wii. The Wii version of the tablet was actually successful, which is what prompted the company to release versions of it for the other consoles later on.
The firm asserts that if the company withheld this information or made any other “false and misleading” statements about the prospects of the product, they may have violated federal securities laws. It’s not stated in the post, but the firm must represent one or more of the company’s investors, most of whom are probably not too happy about the current state of THQ.