+ Reply
Results 1 to 7 of 7

Your favorite Apple, iPhone, iPad, iOS, Jailbreak, and Cydia site.


Thread: Microsoft Faces Class-Action Lawsuit for "Materially False and Misleading Statements"

is a discussion within the

iPad News

forums, a part of the

General iPad

section;
...
  1. #1
    MMi Staff Writer Akshay Masand's Avatar
    Join Date
    Sep 2011
    Location
    New York City
    Posts
    4,051
    Thanks
    3
    Thanked 129 Times in 114 Posts

    Default Microsoft Faces Class-Action Lawsuit for "Materially False and Misleading Statements"


    As Microsoft prepares its critical update for its Windows 8 platform, the company has become the target of a lawsuit alleging that the software giant misled investors regarding both Windows RT and the Surface RT device that was released last year. The lawsuit is a class action complaint filed in the United States District Court for the District of Massachusetts. The complaint accuses Microsoft of violating the federal securities laws with misinforming investors of the progress the Surface RT tablet had made since its release late last year.

    According to the filing, Microsoft “led the market to believe that [its] launch of the Surface RT had been executed in a measured and conservative fashion so that it could observe and understand its progress and outcome.” Instead, the suit calls the Surface RT launch “an unmitigated disaster, which left it with a large accumulation of excess, over-valued Surface RT inventory.”

    The suit goes on to state that Microsoft issued "materially false and misleading financial statements and financial disclosures" regarding the financial impact that the Surface RT’s underperformance was having on the company. Microsoft ended up writing down $900 on the failed service at the end of the most recent quarter and the company’s stock plummeted from $4.04 per share (roughly 11.4%), eliminating about $34 billion of Microsoft’s market value. The suit continued by naming a number of Microsoft’s executives as defendants, including CEO Steve Ballmer and CFO Peter Klein. According to the filing, the individual defendants “are liable as participants in a fraudulent scheme and course of conduct that operated as a fraud or deceit on purchasers of Microsoft common stock” due to their sharing of information the suit deems as “false and misleading,” as well as their supposed “concealment” of other information.

    For those of you who don’t know much about Windows RT, it is a pared-down version of Windows which is meant to run on ARM-powered devices. It was meant to give Microsoft a foothold in the low-power device market and serve as competition against Apple’s dominance in the segment. Instead, the operating system ended up debuting to consumer confusion and Microsoft has been struggling to generate interest since. The full-powered counterpart, Windows 8, has seen a little bit more luck but consumers still tend to opt for Android or iOS-powered tablets and smartphones instead. Microsoft recently announced that the long-awaited update would arrive on October 17 as Windows 8.1. The update is said to give consumers the option to bypass Microsoft’s “Modern” touch-centric interface in favor of the more familiar desktop layout.

    The Surface RT failure is in many ways similar to that of Research in Motion’s (now BlackBerry) PlayBook tablet. After the release of Apple’s iPad in 2010, RIM attempted to roll out its own tablet device in order to capture a portion of that segment. The PlayBook sold just half a million devices in its first quarter of availability, a quarter-million in the quarter after that and 150,000 in the quarter following. RIM eventually ended up taking a write-down of $485 million on unsold inventory and the company has been left reluctant to re-enter the tablet market since. Microsoft has been thought to have sold a bit over 1.5 million of units in total of its entire Surface line, which includes both the Surface Pro and the Surface RT. Although the software giant hasn’t released a detailed breakdown of Surface device sales, the majority of that 1.5 million is believed to consist of Surface Pro sales.

    The recently filed lawsuit seeks class action status and unspecified compensatory damages.

    Source: RGRD Law via TechCrunch

    Twitter: @AkshayMasand

  2. #2
    iPhoneaholic Magnum's Avatar
    Join Date
    Nov 2007
    Location
    Green Bay, WI
    Posts
    458
    Thanks
    33
    Thanked 24 Times in 17 Posts

    I'm at Modmyi.com right?

  3. #3
    Livin the iPhone Life bigboyz's Avatar
    Join Date
    Feb 2009
    Location
    North East Coast
    Posts
    1,677
    Thanks
    2
    Thanked 216 Times in 149 Posts

    haha...^^ agreed! We don't care about MS failures. We don't buy them anyway haha.

  4. #4
    My iPhone is a Part of Me luvmytj's Avatar
    Join Date
    Jul 2008
    Location
    New York
    Posts
    676
    Thanks
    32
    Thanked 70 Times in 56 Posts

    It's a relevant story as they compare it directly to the iPad in the commercials. If it was a story on drinking straws you would be right to complain.

    Besides there are so many windows fan boys here to slam Apple products it just makes sense.

  5. #5
    szr
    szr is online now
    iPhone? More like MyPhone szr's Avatar
    Join Date
    Aug 2009
    Posts
    295
    Thanks
    111
    Thanked 24 Times in 20 Posts

    Quote Originally Posted by luvmytj View Post
    It's a relevant story as they compare it directly to the iPad in the commercials. If it was a story on drinking straws you would be right to complain.

    Besides there are so many windows fan boys here to slam Apple products it just makes sense.
    Exactly. Those regard this site are being a "Pro-Apple news site" are actually forgetting that this isn't a site that exists to glorify Apple based products, but rather it's about technology, the hacking and modifying thereof (the sort of thing that Apple doesn't want you doing) that happens to be Apple centric, but that doesn't mean the news portion is limited just to that. Being a technology site, it can be good to talk about what comparable products there are, rather than just one line of products, would might be fine if this were apple.com. Being a third party site that isn't affiliated with one company or another also gives it the freedom to be diverse in the information that is presented. In other words, news like this helps people get more well rounded information rather than just one side of it.

  6. #6
    *T*
    *T* is offline
    Grumpy *T*'s Avatar
    Join Date
    Nov 2011
    Location
    Turn around slowly...
    Posts
    670
    Thanks
    122
    Thanked 48 Times in 39 Posts

    Worst article I've ever read on this site.

  7. #7
    Green Apple
    Join Date
    Jan 2008
    Posts
    31
    Thanks
    0
    Thanked 1 Time in 1 Post
    Quote Originally Posted by *T* View Post
    Worst article I've ever read on this site.
    One of the more interesting articles i've read on this site in years.

    Not every apple fanboy hates Microsoft. I love OS X ML, and Win 7/8 equally. Still in 2013 Microsoft makes the world go round.

Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts