Shareholders are suing THQ over misguided claims about the popularity of its horrendous failure, the uDraw peripheral.
An estimated 1.4 million unsold units in early 2012 resulted in a USD $100 million revenue shortfall. It's no surprise that THQ's financial woes kicked off around that time.
A New York law firm is suing THQ on behalf of shareholders claiming, "THQ and certain of its executive officers issued false or misleading statements concerning the Company," reports Games Industry.
If you're into legal jargon: "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."
By Ben Salter - Bio