Microsoft’s Surface RT performed so poorly that the company is getting sued in a class action lawsuit. Or, more specifically, Microsoft is being taken to court for allegedly misrepresenting the true financial effect the iPad-killer had on its business. Filed by Robbins, Geller, Rudman & Dowd, the shareholders claim Microsoft failed to reveal just how bad the Surface RT was doing, and that the company violated SEC rules and regulations in the process.
Earlier this year, Microsoft had to take a $900 million hit for inventory adjustments on its Surface RT, which was selling nowhere near expectations. “Microsoft’s foray into the tablet market was an unmitigated disaster,” the suit reads. From a sales standpoint, who could argue? The suit goes on to call Microsoft’s Surface RT “over-valued,” though the company did cut the price recently to $350.
Microsoft has yet to comment on the suit, which seeks to recover damages for those who purchased shares of Microsoft between April 18 and July 18. The Redmond company is allegedly working on a successor to last year’s Surface RT, and NVIDIA’s CEO believes it will be much more successful this time around. But given just how spectacularly the first device failed, it remains to be seen whether the market even wants a Surface RT 2 in the first place.