Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/thqinc/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of THQ Inc. ("THQ") (NASDAQ:THQI) common stock during the period between May 3, 2011 and February 3, 2012 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/thqinc/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges THQ and certain of its officers and directors with violations of the Securities Exchange Act of 1934. THQ develops, publishes, and distributes interactive entertainment software for various game systems, personal computers, wireless devices, and the Internet, including the uDraw™ GameTablet™ ("uDraw").
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, defendants' statements were each materially false and misleading when made because they misrepresented and failed to disclose the following adverse facts, which were known to defendants or recklessly disregarded by them: (a) that demand for the Company's uDraw was well below internal expectations and the Company would have to take back, or provide price protection, on hundreds of thousands of uDraw units that it had sold; (b) that the uDraw for the Microsoft Xbox 360 and Sony PlayStation 3 was a failure and not being purchased by owners of those gaming systems; and (c) 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 outlook for the 2012 fiscal third quarter, ended December 31, 2011. For the quarter, the Company expected to report net sales of 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." Then, on February 2, 2012, THQ issued a press release announcing its financial results for the fiscal third quarter of 2012. 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. In reaction to this news, on February 3, 2012, the price of THQ stock fell $0.23 per share, or 30%, to close at $0.53 per share, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of THQ common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $1.5 trillion. The firm has obtained the largest recoveries in history in six of the eight categories of shareholder class action settlements and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.
Contacts:
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman or David A.
Rosenfeld, 800-449-4900
djr@rgrdlaw.com