THQ landed with second uDraw lawsuit

The commercial failure of uDraw has seen a second lawsuit levelled at THQ.

Levi and Korsinsky has filed a lawsuit with the Californian District Court. It alleges that THQ issued false or misleading statements concerning the company”.

It adds: Specifically, it is alleged that defendants misrepresented or failed to disclose that: (a) the Company’s uDraw GameTablet 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.”

Last month shareholder rights firm Robbins Umeda LLP also filed a lawsuit with the Californian District Court accusing THQ of materially false and misleading statements” regarding uDraw sales.

About MCV Staff

Check Also

EA suggests that it may drop FIFA brand

It's a rock and a hard place for EA, but it's the right thing to be at least considering a change