NY Firm Files Another Stockholder Class Action Lawsuit Against THQ

New York City-based law firm Levi and Korsinsky filed a class action lawsuit against publisher THQ this week over what it told shareholders about its uDraw drawing peripheral. The lawsuit alleges that THQ misled investors by not disclosing important information about the sales performance of the peripheral for Xbox 360 and PlayStation 3. The lawsuit is open to stockholders who bought the company's stock between the May 3, 2011 – February 3, 2012 period.

"The complaint alleges that THQ and certain of its executive officers issued false or misleading statements concerning the Company,” read court documents filed by the firm. "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."

THQ is also facing a class action lawsuit from shareholders represented by Robbins Umeda LLP, who pretty much allege the same thing…

Source: GamesIndustry International


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