Investors Sue Microsoft Over Surface RT 'Unmitigated Disaster'
Microsoft was hit with a class-action lawsuit this week by investors who claimed the company misled them about moribund sales of its Surface RT tablet.
Last month Microsoft took a $900 million charge against earnings to write down its inventory of unsold Surface RT tablets. In a 10-K filing with the U.S. Securities and Exchange Commission, the company disclosed that Surface tablet sales (including both the Surface RT and Surface Pro tablets) were $853 million in fiscal 2013.
The lawsuit calls Microsoft's efforts in the tablet PC market "an unmitigated disaster" and claimed Microsoft executives knew the Surface RT was a failure but intentionally kept sales numbers from investors. The complaint was filed Monday by Robbins Geller Rudman and Dowd LLP on behalf of purchasers of Microsoft shares between the dates of April 18, 2013, and July 18, 2013.