THQ faces second uDraw class-action lawsuit
Law firm Levi and Korsinsky commence suit on behalf of THQ shareholders
New York law firm Levi and Korsinsky has filed a class action lawsuit against troubled publisher THQ, claiming it misled shareholders over its uDraw peripheral.
"The complaint alleges that THQ and certain of its executive officers issued false or misleading statements concerning the Company," said documents the 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."
The lawsuit is open, at no fee, to any stockholders who bought THQ stock between May 3, 2011 and February 3, 2012.
THQ is already facing a similar class-action lawsuit from shareholder rights firm Robbins Umeda LLP, accusing it of "materially false and misleading statements."
You invest in something at your own risk. You didn't have to blindly believe their hype. Hate this kind of crap.
THQ was pretty obviously expecting the sales of the PS3 and 360 versions of uDraw to be as good as or better than the Wii model, but even more obviously, core as well as casual users avoided the thing like the plague.
I've seen the PS3 uDraw tablet at around $30 or under with a pack in game, so it's probably worth a purchase if you don't mind an oddball bit of game history that was rendered obsolete by more expensive devices. The funny thing is, you could abuse the uDraw a lot more than you could an iPad. Ever see the look on a parent's face when their kid drops that device? Priceless.
Hell, I'd bet if some of the damned investors were able to use the product, they may have even picked one up and (a perhaps a console to go with it, as I'd bet most of these folks suing haven't touched a game in years, if ever...)