Gamasutra has reported that law firm Holzer & Fistel LLC will be investigating THQ over whether the company gave “false and misleading” information regarding demand for uDraw. The firm will be looking into whether “THQ may have withheld the fact that demand fell below internal expectations in part because of the differences between players on the Wii and those on the Xbox 360 and PlayStation 3.” If this is found to be the case, it may actually be breaching certain “federal securities laws”.
As of February of this year, THQ still had 1.4 million units of its uDraw tablet still in stock resulting in a $100 million shortfall for the company.