Microsoft Hit with Lawsuit Over Poor Surface Sales

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Microsoft is facing a class action lawsuit over dismal Surface tablet sales and what investors are seeing as misleading information from the company about those figures. According to the lawsuit, Microsoft intentionally made misleading statements about Surface sales, and ultimately that hurt investors.

A new lawsuit claims Microsoft misled investors with false Surface tablet sales figuresA new lawsuit claims Microsoft misled investors with false Surface tablet sales figures

After reporting only US$853 million in sales during the first three quarters the Surface was available, Microsoft took a $900 million loss on the product line. Those numbers aren't making investors happy, and aren't making a dent in Apple's iPad sales.

The lawsuit was filed by Robbins Geller Rudman & Dowd on behalf of Microsoft's investors, according to ZDNet, and apparently the law firm is now on the hunt for a lead plaintiff. In other words, the class action lawsuit was filed without any Microsoft shareholders attached to it.

Microsoft had hoped it could use its Surface tablet to kick start new interest in Windows-based tablets. So far, however, it seems the place where the Surface is gaining the most interest is in the court room.

Comments

gnasher729

It would be a stupid lawsuit if it hit Apple, it is a stupid lawsuit when it hits Microsoft. Telling investors that sales were bad would have killed sales even more, which would have lead to a different lawsuit.

geoduck

gnasher:
Are they suing because MS said sales were bad, and that hurt sales?
Or are they suing because MS has been claiming sales were good and then had to disclose what a disaster they really are?
If the former than I would agree with you. If the latter then IMO MS was engaging in deceitful practices that DID hurt investors and the suit makes sense.

daemon

They were able to file without having a plaintiff???

How is the story about Microsoft and not about Robbins Geller Rudman & Dowd ambulance chasing?

geoduck

daemon
+1

mrmwebmax

+

Agreed, daemon.

On a related note, why does Steve Ballmer keep getting a pass from the tech press, while said press keeps calling for Tim Cook’s head? Makes no sense whatsoever.

Intruder

Maybe the lawyers at RGR&D are disappointed that their new Surface tablets don’t automatically let them dance like in the commercials? That’s certainly worth a suing!

I think Dowd is the one who tries to spin on top of the conference table…

webjprgm

Would a plaintiff have to be a current shareholder?

Oh, wait, I thought that was the name of two people, who may have been shareholders when misleading statements were made, but I just looked it up and that’s a law firm. OK, so, I agree with daemon that it makes no sense they could even file this suit.

gnasher729

Why does Ballmer get a pass? Because Ballmer doing stupid things isn’t news. Hasn’t been news for a long time. But calling for Tim Cook’s head demonstrates they know something that others don’t know. Well, they must know something that I don’t know.

daemon

I always thought Ballmer got a pass because everyone was happy with Microsoft failing over and over again….

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