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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.
