BALA CYNWYD, Pa., July 19, 2012 /PRNewswire/ -- Law office of Brodsky & Smith, LLC announces that it is investigating potential violations of the Securities Exchange Act of 1934 by THQ, Inc. ("THQ" or the "Company") (Nasdaq- THQI-News).
A class action lawsuit commenced in the United States District Court for the Central District of California alleges that THQ and certain of its executive officers misrepresented or failed to disclose that the Company's uDraw GameTablet for Xbox 360 and PlayStation 3 was not being purchased in significant numbers and because demand was below internal expectations, the Company would have to take back or provide price protection on hundreds of thousands units. As a result, the Defendants lacked a reasonable basis for their previous positive statements and were forced to announce on December 7, 2011 that the Company expected net sales to be approximately 25% below its previously announced guidance for the third quarter of 2012. Then on February 2, 2012, THQ announced financial results for the third quarter of 2012, reporting a net loss of $55.9 million. On this news, THQ stock fell approximately 30%.
If you purchased shares of THQ between May 3, 2011 and February 3, 2012 and wish to discuss the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at email@example.com, visiting http://brodsky-smith.com/455-thqi-thq-inc.html, or by calling toll free 877-LEGAL-90. If you choose to retain counsel, you may retain Brodsky & Smith, LLC without financial obligation to you, or you may retain other counsel of your choice.
SOURCE Brodsky & Smith, LLC