Class Action Lawsuits Filed Against THQ
So far, it’s been a bleak year for THQ. After the failure of the uDraw tablet system for the PS3 and Xbox 360 during the 2011 holiday season, the company has lost millions of dollars and cut thousands of jobs, and its stock is now worth pennies. Now it’s looking like things are only getting worse.
Last week the Georgia based firm Holzer, Holzer, & Fistel announced that they would be conducting an investigation on whether THQ failed to inform its investors in a timely manner about the low sales of the uDraw. It looks like there’s definitely enough evidence there to produce a case, as three different law firms have filed suit against THQ. The firms are looking to recover damages for shareholders who purchased THQ stock between May of 2011 and February of 2012.
THQ is between a rock and a hard place. The company is practically in shambles, and it’s my bet that the company can’t really afford to do anything. If they try to settle with the stockholders, the company would likely go bankrupt. However, if the company were to go to court and win, the court costs could still be enough to bankrupt THQ anyway. THQ needs to do something, and fast, but at this point in time, it could be all be too late for the company anyway.
