Microsoft is the subject of a class action lawsuit in the US, which alleges that the software giant misled investors about the scale of the failure of its Surface RT tablet.
Investors who bought Microsoft stock between April 18th and July 18th have come together to take on the Big M, claiming that it made “materially false and misleading statements” in its Q1 results.
They say that Microsoft made out that the rollout of the Surface RT was going fine, when in reality it was anything but.
Ballmer and co recently revealed a $900 million write-down for the failed slate in its last earnings, causing stock to plummet. It dropped by $4 a share, leading to Microsoft’s value sliding by a colossal $34 billion in just one day.
The Surface RT was the subject of a massive marketing and advertising campaign at launch, as Microsoft looked to gain ground on Apple’s iPad and a slew of budget Android tablets, including Google’s Nexus 7 and Amazon’s Kindle Fire.
Ballmer and fellow execs Frank Brod and Tami Reller have been named by the class action suit. They, nor Microsoft in general, have made any comment.