Surface RT sales land Microsoft in court

Jordan O'Brien
August 14, 2013

Microsoft has found itself in hot water over the Surface RT sales, as a class action lawsuit has been filed against the company.

Gail Fialkov, a Microsoft shareholder, filed the suit with law firm Robbins Geller Rudman & Dowd claiming that Microsoft had issued “false and misleading statements” about Surface RT sales.

In addition to Microsoft being named as a defendant, CEO Steve Ballmer, former CFO Peter Klein, Corporate Vice President Frank Broad, and former head of Windows’ business and marketing division, Tami Reller.

According to the lawsuit Microsoft did not disclose to its shareholders how bad the Surface RT sales were, and that the company’s inventory “experienced a material decline in value during the quarter ended March 31, 2013.”

It also claims that  Microsoft delayed the  “Surface RT’s day of reckoning” until June, which “eviscerated about $34 billion of the company’s market value.”

Microsoft recently admitted that it had only made $853 million from Surface RT and Surface Pro sales, with the company being forced to write-off some $900 million.

Currently Gail Fialkov is the sole plaintiff of the case, but the law firm is encouraging more shareholders to get involved within the next 59 days.

Microsoft is currently issuing a no comment statement regarding the suit.

Source: Neowin

About the Author

Jordan O'Brien

Technology Journalist with an unhealthy obsession with trains and American TV. Attempts satire far too often. (+44) 020 7324 3502

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