Microsoft’s getting sued over the Surface RT and its reports
Microsoft has had its good and bad times and now seems that bad times are coming with the somewhat unsurprising fact that a New York law firm has filed a first class-action law suit alleging that Microsoft has mislead investors over the state of its Surface with Windows RT tablet.
Robbins Geller Rudman & Dowd LLP is saying that Microsoft has made “false and misleading” statements about the financial position of the company and the performance of their Surface RT tablet between the dates of April 18, 2013 and July 18, 2013. The company alleges even though Microsoft Corporation knew the way that the Surface RT performed was rather poor with low customer demand and lackluster sales and that it had also declined in value.
$900 million charge against earnings was taken by Microsoft on July 18th after writing down the value of the Surface tablet after it reduced its price by $150. The Surface Pro was later discounted as well by $100.
Although the write down included a lot of things accessories included also as many as 6 million Surface RT tablets were left unsold “even though we found several users who claimed that they loved the tablet and they would surely buy another one” PCWorld says.
However, it seems that what was most objectionable at least to Robin Geller and its clients is that Microsoft’s stock tanked. Dating back before the earnings report of Microsoft its stock has dropped slightly by 9 per cent and the share price has only risen since then.
For now we can absolutely say that Microsoft stays fully committed to the Surface RT tablet and this is supported not only by us but also by the chief-executive of Nvidia Jen-Hsun Huang who continues to claim that his company and Microsoft are working on it. This is it for now we will follow the case.