THQ under investigation following uDraw failure
Georgia-based law firm Holzer Holzer & Fistel has announced that it is investigating THQ over the manner in which it made investors aware of the decreasing demand for its failed uDraw peripheral and games.
According to the firm, THQ may have failed to communicate to investors that demand for the device on PS3 and Xbox 360 had fallen below internal expectations, and as a result may have violated federal securities laws.
It's not yet clear what the ramifications for THQ would be should HHF find any of the above to be the case.
THQ ended production of its tablet controller in February, revealing that the failed expansion of the device to PS3 and 360 had cost the company $80 million in lost revenue.
"We were looking at uDraw as a bridge to this core and digital future," said CEO Brian Farrell at the time, "and that bridge turned out to be a plank that we walked off."