Robbins Umeda LLP* Announces the Filing of a Class Action Suit Against THQ Inc.
Robbins Umeda LLP announces the filing of a federal securities class action by an investor in the U.S. District Court for the Central District of California (Southern Division), on behalf of purchasers of THQ Inc. (NASDAQ: THQI) (“THQ” or the “Company”) shares between May 3, 2011 and February 3, 2012 (the “Class Period”).
The complaint alleges that THQ and certain of its executive officers issued false or misleading statements concerning the Company’s business and financial prospects. Specifically, it is alleged that defendants misrepresented or failed to disclose that: (i) the uDraw for the Microsoft Xbox 360 and Sony PlayStation 3 was not being purchased by owners of those gaming systems; (ii) because demand for the Company’s uDraw GameTablet (“uDraw”) was below internal expectations, the Company would have to take back, or provide price protection, on hundreds of thousands of uDraw units that it had sold; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On December 7, 2011, THQ issued a press release updating its financial outlook for the third quarter of 2012. The press release disclosed that the Company expected to report net sales approximately 25% below its previously announced guidance of $510 million to $550 million, due to “weaker-than-expected initial sales of its uDraw GameTablet for Xbox 360 and PlayStation 3.” Furthermore, on February 2, 2012, THQ issued a press release announcing financial results for the third quarter of 2012 that showed the Company was performing well below expectations. For the quarter, the Company reported net sales of $404.4 million, and a net loss of $55.9 million, or $0.82 per diluted share. On this news, shares of THQ stock fell $0.23 per share, or 30%, to close on February 3, 2012 at just $0.53 per share.
If you purchased or otherwise acquired THQ stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than August 14, 2012. To discuss this action or if you have any questions concerning this notice or your rights or interests, please contact Gregory E. Del Gaizo, Esq. of Robbins Umeda LLP at 800-350-6003 or via the shareholder information form.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
* The firm name changed from Robbins Umeda LLP to Robbins LLP on January 1, 2013.