Majesco Hit with Lawsuit

We have already seen that Majesco was not doing well. Stocks have been falling after Psychonauts and Advent Rising did not do as well as hoped. And then their CEO resigned and stocks fell again.  Unfortunately, trouble seems to just keep finding Majesco. A class action lawsuit was filed against the company alleging that they misled investors.

In the lawsuit, investors claims that Majesco was shipping its retailers products in excess of demand. The retailers were then returning the unsold product or selling it as excess inventory rather than ordering new products. This appears to be a move to inflate the stock price for Majesco and mislead it's investors.

Majesco was working to become a larger player in the video game industry, but it seems their luck has changed. We will keep you posted on this story.

by lindsay
07/20/2005 11:23AM
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