THQ Inc. (NASDAQ:THQI) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
June 15, 2012, 2012 (Shareholders Foundation) -- An investor in NASDAQ:THQI files a lawsuit in the U.S. District Court for the Central District of California against THQ Inc. over alleged Violations of Federal Securities Laws in connection with certain statements over its uDraw GameTablet.
According to the complaint the plaintiff alleges on behalf of purchasers of THQ Inc. (NASDAQ:THQI) common stock during the period between May 3, 2011 and February 3, 2012, that THQ Inc. and certain of its certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company’s business and prospects.
THQ Inc. reported that its Total Revenue rose from $665.26million for the 12months period ending on March 31, 2011 to $830.84million for the 12months period ending on March 31, 2012. However, its Net Loss over the same time periods increased from $136.10million to $239.95million.
On December 7, 2011, THQ Inc. updated its outlook for the 2012 fiscal third quarter, ended December 31, 2011. For the quarter, THQ Inc. expected to report net sales of 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.”
Then on February 2, 2012, THQ Inc. (NASDAQ:THQI) reported financial results for the third quarter ended December 31, 2011. Among other things, THQ Inc., said that it is exiting development of traditional kids’ licensed console games and has no future commitments or plans to manufacture uDraw hardware.
Shares of THQ Inc. (NASDAQ:THQI) have lost substantial value. Over the past 12 months NASDAQ:THQI shares fell from as high as $3.59 per share on June 29, 2011 to recently $0.64 per share.
On Jun e15, 2012, NASDAQ:THQI shares closed at $0.69 per share, significantly less than its current 52weekHigh of $3.67 per share.