Oracle Faces Securities Fraud Lawsuit Over AI Spending

Reuters
Feb 15
Oracle Faces Securities Fraud Lawsuit Over AI Spending

Oracle Corporation is facing a class action lawsuit alleging securities fraud, with claims filed against the company and certain senior executives. The lawsuit accuses Oracle of violating federal securities laws, particularly in connection with disclosures about its spending on artificial intelligence infrastructure. The case centers on significant stock declines after Oracle reported lower-than-expected revenue growth for the second quarter of fiscal 2026, capital expenditures that exceeded analyst expectations, and a negative free cash flow exceeding $10 billion. Despite increased spending, Oracle did not raise its revenue projections for 2026 and made only a modest increase to 2027 projections. Following these disclosures in December 2025, Oracle’s stock price fell nearly 11 percent in a single day. The class action is pending in the U.S. District Court for the District of Delaware, and investors have until April 6, 2026, to seek appointment as lead plaintiff in the case.

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