Microsoft Sued For Lying About True Surface RT Sales Figures
Ryan Martin / 5 years ago
Microsoft’s experiences with the Surface RT tablets just go from bad to worse. After having to pay a $900 million write-down on adjusting inventories recently, Microsoft is now been taken to court for lying about Surface RT sales. Law firm Robbins Geller Rudman & Dowd, who filed the lawsuit on behalf of Gail Fialkov, stated that Microsoft had provided false and misleading information. The lawsuit documents mention CEO Steve Ballmer, CFO Peter Klein, Corporate VP Frank Brod and former Marketing chief of Windows Tami Reller, it claims they all lied about Surface RT sales.
“Defendants issued materially false and misleading statements regarding the Company’s financial performance and its tablet computer, the Surface RT. Specifically, defendants misrepresented and failed to make public the following adverse facts:
(i) that the Company’s Surface RT product was experiencing poor customer demand and lackluster sales;
(ii) that the Company’s Surface RT inventory experienced a material decline in value during the quarter ended March 31, 2013;
(iii) that the Company’s financial statements for the quarter ended March 31, 2013 were materially false and misleading and violated Generally Accepted Accounting Principles and Microsoft’s publicly disclosed policy of accounting for inventories;
(iv) that the Company’s Form 10-Q for its third quarter of 2013 failed to disclose then presently known trends, events or uncertainties associated with the Surface RT product that were reasonably likely to have a material effect on Microsoft’s future operating results;
(v) that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s Surface RT product during the Class Period.”
Softpedia claims that Microsoft have yet to respond publicly about the allegations.
Image courtesy of Microsoft