Microsoft sued on behalf of shareholders over Surface RT

Paul Thurrott:

A proposed class action lawsuit has been filed against Microsoft on behalf of its shareholders, alleging that the firm lied about the financial performance of its Surface RT tablet. The surprise revelation that sales were much less than expected came months later than required by law, the suit says, and immediately “eviscerated” $34 billion of Microsoft’s market value, materially impacting shareholders.

The suit names Microsoft as well as Steve Ballmer, Peter Klein, Frank Brod and Tami Reller as defendants.

The news for Microsoft and the Surface RT just keeps getting worse.



  • Ariel Isaac

    I heard that RT stands for Real Turd

  • Kriztyan

    Windows 8 is a bad idea. Having an all encompassing solution to a UI and UX problem in which you combine touch and traditional user interfacing is a flawed solution that will never gain traction. This was predicted and now it has been irrefuitably proven.

    • SSShu

      Dude – if Win8 is a bad idea then whats Win RT?

      • Mother Hydra

        The hallucinations caused by eating a bad egg salad sandwich from a vending machine. Or maybe the worms are taking over already?

        • SSShu

          Yep – around that ballpark.

      • Kriztyan

        The worst part of Windows 8.

  • jimbotomy

    This is not unusual. Anytime something bad happens for a company they are hit with a shareholder lawsuit if for no other reason than to see if the suit sticks. I wouldn’t put much stock in it until it gets past a motion to dismiss (which it might, for all I know).

    • Mother Hydra

      This must be totally right- it is preceeded with the all important qualifier “for all I know.” I guess I missed where google shareholders are suing because of the new nexus hardware problems (gps, lag). Or Apple shareholders lawyering up during that whole maps debacle. OH WAIT none of that happened because you’ve made ridiculously broad generalizations. Thanks Jimbo.

      • jimbotomy

        I should have been more specific. Practically anytime something is revealed by a company that ends up in a major selloff of stock and resulting dip in stock prices, there’s a shareholder suit. The difference in the scenarios you mention is that neither Apple nor Google took a financial hit because of those problems. Microsoft took a $900 million writedown that affected their bottom line. That doesn’t mean the suit has merit.

        I don’t know whether the suit has merit or not because I’m not a judge sitting at the end of a long trial about such a thing. Perhaps this will stick, perhaps it won’t, but the filing of a suit means absolutely nothing.

  • http://bradchoate.com Brad Choate

    Disappointed the article didn’t read: “The suit says that Surface RT’s failure is due, in large part, to ‘the limitations associated with its operating system, Windows RT.’ And that just scratches the surface.”

  • Mother Hydra

    Please won’t someone think of the developers?! developers developers developers developers- AAAAND take it away Balmer!