THQ Being Sued again over uDraw Tablets
A class action lawsuit has been filed against THQ over allegations that the company misled investors over its failed video game peripheral, the uDraw Game Tablet. Last month, a law firm in Georgia began an investigation into the situation at the behest of some investors, which resulted in a class-action lawsuit being filed a few days later. This latest suit has been filed by New York-based law firm Levi and Korsinsky.
Say the documents regarding the filing:
“The complaint alleges that THQ and certain of its executive officers issued false or misleading statements concerning the Company. Specifically, it is alleged that defendants misrepresented or failed to disclose that: (a) the Company’s uDraw GameTablet (“uDraw”) for Microsoft Xbox 360 and Sony PlayStation 3 was not being purchased by owners of those gaming systems; (b) because demand for uDraw was below internal expectations, the Company would have to take back, or provide price protection, on hundreds of thousands of units that it had sold; and (c) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.”
The document also says that any shareholders who purchased THQ stock between May 3, 2011 and February 3, 2012, can join the suit at no cost.