INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Oracle Corporation of Class Action Lawsuit and Upcoming Deadlines - ORCL
OracleOracle(US:ORCL) Prnewswire·2026-02-12 23:42

Core Viewpoint - A class action lawsuit has been filed against Oracle Corporation, alleging securities fraud and unlawful business practices related to its AI infrastructure strategy and financial disclosures [1]. Summary by Relevant Sections Class Action Details - Investors who suffered losses in Oracle securities are encouraged to contact Pomerantz LLP to join the class action, with a deadline to apply as Lead Plaintiff by April 6, 2026 [1]. - The lawsuit claims that Oracle and its executives made misleading statements regarding the company's capital expenditures and revenue growth expectations [1]. Allegations of Misleading Statements - The complaint alleges that Oracle's AI infrastructure strategy would lead to significant increases in capital expenditures without corresponding near-term revenue growth [1]. - It is claimed that Oracle's increased spending poses risks to its debt, credit rating, free cash flow, and project funding capabilities [1]. Impact of Analyst Reports - 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, raising concerns about OpenAI's ability to meet contractual obligations [1]. - Following a "Sell" rating from Rothschild & Co. Redburn on September 25, 2025, Oracle's stock price fell over 5%, with a price target set at $175, indicating a potential 40% decline [1]. Financial Performance and Stock Reactions - Oracle's Q2 fiscal year 2026 results showed revenue growth below analyst expectations, with capital expenditures exceeding estimates and negative free cash flow exceeding $10 billion, leading to an 11% drop in stock price [1]. - Reports on December 12, 2025, indicated delays in data center completion for OpenAI, further suggesting potential revenue growth delays, which contributed to additional stock price declines [1]. - On December 17, 2025, it was reported that Blue Owl Capital withdrew funding for a $10 billion data center project due to concerns over Oracle's spending and rising debt, resulting in a further 5% drop in stock price [1].