Microsoft is apparently facing serious problems as a US law firm has filed a class action lawsuit on behalf of the shareholders of Microsoft. The law firm alleges that Redmond has been misleading investors by failing to warn them of the dismally failing sales of the ARM based Surface RT fondleslabs.
A press release was also issued in the same context by the law firm, Robbins Geller Rudman and Dowd on Monday which clarified that the lawsuit has charged Microsoft with the violations of the Securities Exchange Act of 1934. It includes the company’s failure to disclose the known and evaluated trends, events and uncertainties.
The individual defendants have been enlisted as former and present executives including Steve Ballmer, CEO, Frank Brod, vice president of Finance, Peter Klein, ex-CFO and Tami Reller, executive vice president of marketing and former Windows head, apart from the Microsoft Inc. itself.
In simple English, the lawsuit states that in spite of the fact that Microsoft knew the miserable plight of the sales of the Surface RT, the company did nothing and all the while, the executives persisted in relating to their sales of the tablet business in such radiant and hopeful terms that were actually misleading and materially false.
Until very recently, Ballmer, the present CEO of Microsoft Inc., has helped the company keep a top secret of the abysmal sales of the Surface RT tablets, marking them as “modest” and going as far as saying that the customers’ reception to the product was absolutely “fantastic”.
It was in mid-July when Redmond reported the fourth quarter and annual fiscal reports of 2013, that the shares had declined the lowest in four years. Microsoft has refused to comment on the issue in any way whatsoever.