THQ hit by wave of class action lawsuits

Publisher THQ has been swept up in a tide of lawsuits over allegations it knowingly made "false and misleading statements" when informing investors of estimated sales for the uDraw gaming tablet.

The trouble began a week ago when Atlanta law firm announced it was investigating claims that the company failed to inform investors in a timely manner of low sales for the uDraw on Xbox, Playstation 3, and Wii.

Now three different firms have filed class action suits against the publisher claiming that THQ’s handling of the uDraw tablet and associated franchise violated federal securities laws, reports Gamasutra.

Early 2011 sales figures for the Wii uDraw tablet were said to be good, and THQ made a disasterous decision to expand the franchise to the Xbox 360 and PS3 for the holiday season.

The mistake wound up costing the company an estimated $30 million in operating losses, leading to massive layoffs as the company dropped the franchise.

Class action specialists Robbins Geller Rudman & Dowd, shareholders litigation firm Robbins Umeda, and securities law firm Federman & Sherwood have all filed class action suits against THQ with the United States District Court for the Central District of California, and encourage effected shareholders to come forward.