THQ's second lawsuit

More trouble for uDraw tablet.
Text: Mike Holmes
Published 2012-07-18

THQ has been hit with a second lawsuit concerning their failed uDraw tablet.

Requested legal documents suggest that THQ and "certain of its executive officers issued false or misleading statements concerning the Company."

The document alleges that "the Company's uDraw GameTablet ("uDraw") for Microsoft Xbox 360 and Sony PlayStation 3 was not being purchased by owners of those gaming systems; (b) because demand for uDraw was below internal expectations, the Company would have to take back, or provide price protection, on hundreds of thousands of units that it had sold; and (c) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects."

This second action is just another nail in the coffin of the uDraw, a device that looked doomed from launch. Its dramatic failure was a contributing factor to THQ's recent troubles, and the publisher will be hoping that they can get past this latest legal challenge and continue their recent recovery.

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