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Law firm commences class action lawsuit against THQ for failed uDraw tablet

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In trouble over uDraw again

udraw
udraw

Law firm Levi and Korsinsky announced that it is commencing a class action lawsuit against THQ over the failure of the uDraw tablet, and is currently inviting THQ shareholders to take part.

Law firm Levi and Korsinsky announced that it is commencing a class action lawsuit against THQ over the failure of the uDraw tablet, and is currently inviting THQ shareholders to take part.

The class action lawsuit, which would be of no-cost and no-obligation to shareholders, is on behalf of shareholders who purchased THQ stock between May 3, 2011 and February 3, 2012 (the "Class Period").

The Information Request Form states:

"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."

Stockholders can participate in the class action lawsuit here.

This is not the first time a class action lawsuit has been brought against THQ over the failure of the uDraw tablet. Last month shareholders rights firm Robbins Umeda LLP claimed THQ misled its shareholders by misrepresenting or withholding sales information regarding the uDraw tablet. Georgia law firm Holzer Holzer and Fistel LLC also investigated THQ over claims they made about the uDraw peripheral.

uDraw for the Wii shipped 1.7 million units during THQ's fiscal year 2011. The tablet has since been discontinued.