A legal firm as launched an investigation against THQ over its failed uDraw peripheral, as the company may have withheld information regarding consumer demand and violated federal securities laws.
THQ's been in dire straits for quite some time, but that situation got a bit worse today, as a Georgia law firm has announced that it is investigating the company over claims it made about its failed line of uDraw peripherals. Specifically, the law firm Holzer Holzer & Fistel, LLC seeks to determine whether THQ failed to disclose information in a timely manner about the decreased demand for uDraw on the Xbox 360 and PlayStation 3. According to Holzer Holzer & Fistel, THQ may have withheld the fact that demand fell below internal expectations in part because of the differences between players on the Wii and those on the Xbox 360 and PlayStation 3. If the company did indeed hold back this information, or if it made other "false and misleading" statements, the company may have violated federal securities laws. Holzer Holzer & Fistel also said THQ previously pitched the uDraw tablet as a source for potential revenue growth, and when the company discontinued the peripheral in February, it dealt a significant blow to many if its investors. As of this writing, neither THQ nor Holzer Holzer & Fistel have outlined the potential ramifications of this investigation, but Gamasutra has reached out to both parties for further comment.
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