A class-action lawsuit has been filed against Microsoft by shareholders over the progress of the Surface with Windows RT tablet.
Robbins Geller Rudman & Dowd LLP announced the lawsuit on behalf of "purchasers of Microsoft Corporation common stock" on Aug. 12.
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According to the complaint, Microsoft and select officers violated the Securities Exchange Act of 1934. The complaint noted Microsoft issued false and misleading statements about the financial performance of the Surface with Windows RT tablet.
The plaintiff, currently listed as Gail Fialkov on behalf of "others similarly situated," stated Microsoft made it believe that the launch of Surface with Windows RT was executed in a "measured and conservative fashion" so shareholders could observe and understand its progress.
"What Defendants knew, but failed to disclose to investors, however, was that Microsoft's foray into the tablet market was an unmitigated disaster, which left it with a large accumulation of excess, over-valued Surface RT inventory," the complaint stated.
The complaint added that the Surface with Windows RT mainly failed due to limitations with its operating system, the Windows RT, a variant of the Windows 8 platform.
As Latinos Post reported, Microsoft revealed it was taking a $900 million charge due to "related to Surface RT inventory adjustments." The "adjustments" have been suggested to represent the unsold tablets of the Surface with Windows RT.
Microsoft CEO Steve Ballmer addressed the Surface with Windows RT sales during an internal town hall in late July, stating, "We built a few more devices than we could sell."
Coincidentally, the Surface with Windows RT prices dropped by $100 for both 32GB and 64GB tablets. The tablet-only 32GB Surface with Windows RT at the Microsoft Store is $349, down from the original $449 price, while the 64GB variant will cost the consumer $449 instead of $599. For consumers buying the Surface with Windows RT with a Touch Cover, it will cost an additional $100 for each 32GB and 64GB model.
The plaintiffs are seeking to recover damages on behalf of the Microsoft common stock purchasers during the Class Period of April 18 and July 18 this year.
Microsoft has so far declined to comment on the lawsuit, according to The Register.
To read the full complaint against Microsoft Corporation, click here.
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