Investors sue Microsoft over misleading claims of Surface sales performance

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Microsoft’s Surface tablets – and the Surface RT in particular – haven’t been the runaway hits the company might have hoped for. Recently, we’ve witnessed a number of price cuts in efforts to boost sales, and learned of the nearly billion dollar losses Microsoft was facing due to making more Surface RTs than it could sell. Now a lawsuit seeks to hold Microsoft accountable for its failings, accusing the company of engaging in false and misleading statements regarding Surface sales.

Specifically, the suit says that in the three months up leading to the revelation of Microsoft’s massive Surface RT back-stock, the company was clearly aware that the tablet wasn’t selling well, and ultimately just wasn’t as valuable a product as Microsoft was presenting it to be. As a result, shareholders believe they weren’t able to make informed decisions about their investments.

Key to this case would be proving what Microsoft knew and when, which could be very tricky for outsiders like these to establish. We’d also need to see evidence linking a recent decline in stock price to this Surface RT business – it all sounds like a difficult fight ahead.

Microsoft, at least, seems focused on the future, and we’re already looking forward to see what it might have in store for second-gen Surface models.

Source: PCWorld

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bitsRead more about Stephen Schenck!