Things are going from bad to worse for THQ
WEST HARTFORD, CT--(Marketwire -06/28/12)- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of purchasers of the common stock of THQ, Inc. ("THQ" or the "Company") (THQI) between May 3, 2011 and February 3, 2012, inclusive (the "Class Period").
The Complaint alleges that THQ and certain of its officers and directors violated the federal securities laws. Specifically, defendants failed to disclose the following adverse facts: (i) demand for THQs uDrawTM GameTabletTM ("uDraw") was well below internal expectations and THQ would have to take back, or provide price protection, on hundreds of thousands of uDraw units sold; (ii) that the uDraw for the Microsoft Xbox 360 and Sony PlayStation 3 was a failure and not being purchased by owners of those systems; and (iii) as a result, defendants lacked a reasonable basis for their positive statements about THQ.
On December 7, 2011, THQ updated its outlook for the 2012 fiscal third quarter announcing the Company expected to report net sales of approximately 25% below its previously announced guidance due to "weaker-than-expected initial sales of its uDraw GameTablet." Then, on February 2, 2012, THQ reported third quarter of 2012 net sales of $404.4 million, and a net loss of $55.9 million. On this news, on February 3, 2012, THQ stock fell significantly.
If you are a member of the class, you may, no later than August 14, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/thq/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firstname.lastname@example.org. For more information about class action cases in general, please visit our website: www.izardnobel.com.