THQ Facing Investigation Over uDraw Failure
One of THQ’s biggest failures, and undoubtedly one of the biggest reasons why the company is in dire financial straits may be coming back once again to bite them in the butt. The Georgia based law firm Holzer, Holzer, & Fistel has announced that they’ll be investigating THQ over claims it made about the failed uDraw line of peripherals. The investigation will be looking to see if THQ mislead investors about the demand for the uDraw by failing to disclose information regarding its demand in a timely fashion.
The uDraw was pitched to investors as a source of potential revenue, according to the law firm, and those same investors took a significant blow once the tablet was discontinued. If THQ did hold back any information, it may have violated federal securities laws. At this time it’s unknown as to what the possible ramifications could be, but they can’t be good.
This is a game changer. If THQ really did withhold information from its investors and violate those federal securities laws, then we just might be seeing the last days of THQ here. While a larger, better equipped company could weather the storm, THQ is not in a good position at all to deal with paying back investors. We’ll have to see what the investigation turns up, and I hope for THQ’s sake that the law firm comes up with nothing.
