THQ Faces Another Lawsuit

THQ Faces Another Lawsuit

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The uDraw GameTablet debacle has inspired a second class action lawsuit.

The uDraw GameTablet was a big hit when it was released for the Nintendo Wii in 2010, but the Xbox 360 and PlayStation 3 versions tanked badly when they came out a year later - very badly indeed, to the point that the company was forced to cut its third quarter sales forecast for the 2011 fiscal year by a stunning 25 percent. One class action lawsuit alleging that THQ failed to disclose the true magnitude of the uDraw disaster in a timely fashion has already been filed, but now New York-based law firm Levi Korsinsky LLP is angling for a piece of the action too.

"The complaint alleges that THQ and certain of its executive officers issued false or misleading statements concerning the Company," the firm wrote in an announcement of the lawsuit and request for information posted on its site.

"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," it says.

The document doesn't indicate what the firm is seeking in the suit (my money is on money) but anyone who purchased THQ stock between May 3, 2011 and February 3, 2012 can request more information about the suit and whether or not they are a potential claimant by filling out and submitting the form at zlkdocs.com.

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If anyone has bought stock in THQ in the last couple of years, they're idiots. I don't think our legal system should exist to protect people who make clearly bad investments. Don't courts have actual criminals to prosecute rather hear the whining of people who didn't bother to look into the history of this company?

THQ, uDraw a lot of contempt don't you?

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They realize that this doesn't actually work, right?

They're like vultures descending on THQ, hoping to kill it off and grab all the valuables they can before anyone else gets there.

grigjd3:
If anyone has bought stock in THQ in the last couple of years, they're idiots. I don't think our legal system should exist to protect people who make clearly bad investments. Don't courts have actual criminals to prosecute rather hear the whining of people who didn't bother to look into the history of this company?

It's a hazy area. But there's a big difference between making a bad bet and being deliberately misled by a corporate entity.

well fuck...............

could this be the final nail in the THQ coffin??

Geez, can't they just leave THQ a little bit more and see if they can stumble back again? At least let them release Metro Last Light first, and let that decide the future of the company before you start vulturing and ripping apart what little they have left.

captcha: filthy rich
Ummm, not THQ...

Wait, the Udraw tablet was released? When the hell did that happen? I thought it was still a concept.

Andy Chalk:

grigjd3:
If anyone has bought stock in THQ in the last couple of years, they're idiots. I don't think our legal system should exist to protect people who make clearly bad investments. Don't courts have actual criminals to prosecute rather hear the whining of people who didn't bother to look into the history of this company?

It's a hazy area. But there's a big difference between making a bad bet and being deliberately misled by a corporate entity.

It's an attempt to use the courts as a reprieve for lazy investing. At best, they've got an argument that the leadership at THQ is grossly incompetent. Unless they have their hands on an email actually saying "we're going to mislead investors by promoting a game we know will flop", then they can't prove intent, which is the only actionable offense in this case. Besides that, THQ has a long history of only losing money and I find it hard to believe that anyone who put the barest effort at all into investing their money would not notice this and perhaps find better things to do with their cash - like using it for toilet paper.

Oddly enough, this made their stocks jump up by about 5.54% (at the time of this post)
http://www.google.ca/finance?q=thqi

Would any stockologists care to explain?

EDIT:
Now it's gone up by 8.70%!

Edit2: 8.91%
I should have invested :(

Not to nitpick (by which I mean "Hooray for nitpicking!") but that chart seems to have 'Jan 2007' written in the top left corner. In which case, what does it have to do with the article? None of the quoted dates match that.

Is it really just a cool chart of stock dropping that happens to display the THQ logo?

 

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