Surface RT just took another hit. You've heard recently about vendors trying to swim away from the sinking Windows RT ship, and should have been privy to the revelation that Microsoft didn't do that great with its first foray into tablets. But, if that's not enough to make a company transitioning into a devices and services entity cry, this might…
Microsoft has been served with a class action suit due to misleading and false statements regarding its financial performance related to the Surface RT, violating the Securities Exchange Act of 1934.
In the filed document, both Surface RT and Windows RT are highlighted as the problem. Several sources are used in the document, including bloggers, online opinion pieces, and Microsoft's own execs.
Full press release
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Microsoft Corporation
NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/microsoft/) today announced that a class action has been commenced in the United States District Court for the District of Massachusetts on behalf of purchasers of Microsoft Corporation (“Microsoft” or the “Company”) (Nasdaq:MSFT) common stock during the period between April 18, 2013 and July 18, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 12, 2013. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/microsoft/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Microsoft and certain of its officers with violations of the Securities Exchange Act of 1934. Microsoft is the world’s largest software company, primarily as a result of its near-monopoly on Windows personal computer (“PC”) operating system software and its Microsoft Office collection of productivity programs.
The complaint alleges that, during the Class Period, 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; and (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.
On July 18, 2013, Microsoft issued a press release announcing its financial results for the fiscal 2013 fourth quarter and year end, the periods ended June 30, 2013. For the quarter, the Company reported revenue of $19.9 billion and net income of $4.97 billion, or $0.59 per share. The Company’s results for the quarter were adversely impacted by a $900 million inventory charge, or an amount equal to $.07 per share, related to Surface RT “inventory adjustments.” On this news, Microsoft common stock suffered its biggest price decline in more than four years, plunging $4.04 per share, or 11.4%, on very heavy trading volume to close at $31.40 per share.
Plaintiffs seek to recover damages on behalf of all purchasers of Microsoft common stock during the Class Period (the “Class”). The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50every year since 2003. Please visit http://www.rgrdlaw.com for more information.