RipTen just received word that a second lawsuit has been filed, accusing THQ of failure to accurately disclose performance of the failed uDraw tablet. The firm of Robins Gellar Rudman & Dowd has initiated a class action in the state of California on behalf of purchasers of common stock during the period of May 3, 2011 and February 3, 2012.
As we mentioned earlier this week, should the courts find that THQ knowingly misrepresented the performance of the uDraw tablet against internal expectations, they would be in violation of the Securities Exchange Act of 1934.
THQ has recently completed a leadership shuffle that saw the ouster of former Executive Vice President of Core Games Danny Bilson and the appointment of Jason Rubin, co-founder of Naughty Dog, as President. Additionally, the publisher also sold off the UFC license to EA and subsequently laid off staff at its San Diego studio. The company is also in the process of initiating a reverse stock split to avoid delisting by NASDAQ (as it was required to do in 1995).