ORCL INVESTOR DEADLINE: Oracle Corporation Investors with Substantial Losses Have Opportunity to Lead the Oracle Class Action Lawsuit – RGRD Law
OracleOracle(US:ORCL) Globenewswire·2026-02-07 15:10

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]. 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, credit rating, and free cash flow [3]. - On September 24, 2025, S&P Global Ratings indicated that OpenAI could account for over one-third of Oracle's total revenues by fiscal 2028, which posed risks if OpenAI's performance did not meet expectations. Following this news, Oracle's stock price fell [4]. - Analysts at Rothschild & Co. Redburn initiated coverage of Oracle with a "Sell" rating on September 25, 2025, predicting that promised revenues from AI infrastructure would not materialize and set a price target of $175, representing a 40% decline. This announcement led to a more than 5% drop in Oracle's stock price [5]. - On December 10, 2025, Oracle reported second-quarter fiscal year 2026 results that included revenue growth below analysts' expectations, capital expenditures significantly above estimates, and negative free cash flow exceeding $10 billion, resulting in nearly an 11% decline in stock price [6]. - Reports on December 12, 2025, indicated delays in the completion of data centers for OpenAI due to labor and material shortages, further suggesting that Oracle's anticipated revenue growth might be postponed, causing additional stock price declines [7]. - On December 17, 2025, it was reported that Blue Owl Capital withdrew funding for a $10 billion Oracle data center project due to concerns over Oracle's spending and rising debt levels, leading to another drop of over 5% in Oracle's stock price [8]. Legal Process - 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 class action lawsuit, representing the interests of all class members [9].