Core Viewpoint - The Oracle class action lawsuit alleges that Oracle Corporation and its executives made misleading statements regarding the company's financial health and AI infrastructure strategy, leading to significant stock price declines during the class period from June 12, 2025, to December 16, 2025 [1][3]. Group 1: Allegations and Financial Impact - The lawsuit claims that Oracle's AI infrastructure strategy would lead to substantial increases in capital expenditures without corresponding near-term revenue growth, raising concerns about the company's debt and credit rating [3]. - On September 24, 2025, S&P Global Ratings indicated that OpenAI could account for over a third of Oracle's total revenues by fiscal 2028, which posed risks related to OpenAI's ability to meet contractual obligations [4]. - Following negative analyst coverage from Rothschild & Co. Redburn on September 25, 2025, which set a $175 price target for Oracle, the stock price fell over 5% [5]. - Oracle's financial results announced on December 10, 2025, showed revenue growth below expectations and negative free cash flow exceeding $10 billion, resulting in an almost 11% drop in stock price [6]. - Reports on December 12, 2025, indicated delays in data center completion for OpenAI due to labor and material shortages, further suggesting potential revenue growth delays for Oracle [7]. - On December 17, 2025, it was reported that Blue Owl Capital withdrew funding for a $10 billion Oracle data center project, leading to an additional decline of over 5% in Oracle's stock price [8]. Group 2: Legal Process and Firm Background - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Oracle common stock during the class period to seek appointment as lead plaintiff in the lawsuit [9]. - Robbins Geller Rudman & Dowd LLP, the firm handling the case, has a strong track record, having recovered over $916 million for investors in 2025 alone, and is recognized as one of the largest plaintiffs' firms globally [11].
ORCL INVESTOR ALERT: Oracle Corporation Investors with Substantial Losses Have Opportunity to Lead the Oracle Class Action Lawsuit – RGRD Law