Three law firms have filed class action lawsuits against THQ on behalf of clients over allegations that the publisher lied to investors regarding uDraw sales.
The company knowingly made "false and misleading statements" and failed to warn investors in a timely manner about low uDraw sales, the lawsuit states.
THQ overestimated demand when expanding the uDraw franchise last year, which resulted in over $30 million in operating losses.
uDraw was eventually buried and its developers laid off.
The lawsuit seeks damages for shareholders who purchased THQ stock between May 2011 and February 2012, and is currently with the central district court of California.