NEW YORK, June 22, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at THQ Inc. ("THQ" or the "Company") (Nasdaq: THQI).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) uDraw for the Microsoft Xbox 360 and Sony PlayStation 3 was not being purchased by owners of those gaming systems as expected; (2) because demand for the Company's uDraw GameTablet ("uDraw") was below internal expectations, the Company would have to take back, or provide price protection, on hundreds of thousands of uDraw units that it had sold; and (3) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On December 7, 2011, THQ issued a press release updating its financial outlook for the third quarter of 2012. The press release disclosed that the Company expected to report net sales 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." Furthermore, on February 2, 2012, THQ issued a press release announcing financial results for the third quarter of 2012 that showed the Company was performing well below expectations. For the quarter, the Company reported net sales of $404.4 million, and a net loss of $55.9 million, or $0.82 per diluted share. On this news, shares of THQ stock fell $0.23 per share, or 30%, to close on February 3, 2012 at just $0.53 per share.
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If you purchased THQ securities between May 3, 2011 and February 3, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/THQI. You can also contact us by calling Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected], [email protected] or [email protected] Faruqi & Faruqi, LLP also encourages anyone with information regarding THQ's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan Monteverde, Esq.
Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP