Law firm 'investigating whether THQ over-hyped uDraw'

Failed tablet 'may have been pitched in 'false and misleading manner'

A Georgia law firm has been asked to look into whether beleaguered publisher THQ had oversold the potential and popularity of its failed peripheral uDraw, according to a new report.


Holzer & Fistel LLC is looking into whether THQ had "failed to disclose information in a timely manner about the decreased demand for uDraw on the Xbox 360 and PlayStation 3", according to news site Gamasutra.

THQ is being questioned whether it made "false and misleading" statements, and if so whether these violate federal securities laws.

uDraw is a game tablet that left THQ with around 1.4 million unsold units by February 2012, resulting in a revenue shortfall of around $100 million. The sales disaster is widely considered as what triggered THQ's wider financial troubles.

THQ is targeting retailers outside of the games sector to shift its remaining uDraw stock. It is not clear how far the company is willing discount the price of the units in order to shift the remainder.