If you thought the ill-fated Microsoft Surface RT had done all the damage it was destined to do, well, think again.
Following news of that $900 million hit on unsold units, we’re told that Microsoft is facing a class action lawsuit for failing to alert shareholders just how bad things were with the Surface RT.
As reported on AllThingsD, law firm Robbins, Geller, Rudman, & Dowd asserts that Microsoft failed to abide by generally accepted accounting principles, and - in addition - Securities and Exchange Commission rules.
“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,” reads the suit.
“Defendants’ materially false and misleading conduct enabled Microsoft to forestall Surface RT’s day of reckoning and delay what would be tantamount to an admission by the Company that its all-important entry into the tablet market had been a failure.”
Ouch. Both models of the Microsoft Surface (that’s the RT and the Pro) have seen price cuts in the past month or so, and CEO Steve Ballmer recently conceded: "We built too many." Which, let's face it, is really just another way of saying no one was buying them.
That admission comes too late for Robbins, Geller, Rudman, & Dowd, which is looking to recover damages for those who bought Microsoft common stock between April 18 and July 18 this year.