ORCL Announcement: Kessler Topaz Meltzer & Check, LLP Announces the Firm Has Filed a Securities Fraud Class Action Lawsuit Against Oracle Corporation

Core Viewpoint - A securities fraud class action lawsuit has been filed against Oracle Corporation by Kessler Topaz Meltzer & Check, LLP on behalf of investors who acquired Oracle common stock between June 12, 2025, and December 16, 2025, alleging that the company misled investors regarding its AI infrastructure investments and revenue growth potential [1][2]. Group 1: Allegations and Misconduct - The lawsuit claims that Oracle misrepresented its AI infrastructure strategy, leading to significant increases in capital expenditures (CapEx) without corresponding near-term revenue growth [1][2]. - Oracle's executives allegedly assured investors that increased spending on AI infrastructure would lead to rapid revenue and profit growth, which did not materialize [1]. - The complaint highlights that Oracle's CapEx projections for fiscal year 2026 increased to $50 billion, significantly higher than previous estimates, while revenue guidance remained largely unchanged [1][2]. Group 2: Stock Price Impact - Following warnings from S&P Global Ratings about potential revenue risks associated with OpenAI, Oracle's stock price fell by $5.37 per share, nearly 2%, on September 24, 2025 [1]. - After analysts initiated coverage with a "Sell" rating and set a price target of $175, Oracle's stock dropped an additional $17.13 per share, over 5.5%, on September 25, 2025 [1]. - On December 11, 2025, Oracle's stock declined by $24.16 per share, nearly 11%, after the company reported disappointing financial results and increased CapEx projections [1][2]. Group 3: Financial Commitments and Risks - Oracle disclosed $248 billion in additional lease commitments related to data centers, which analysts described as a "bombshell disclosure," indicating a significant increase from previous commitments [1][2]. - The mismatch between the long duration of property leases and shorter contracts with key customers like OpenAI raises concerns about Oracle's financial stability [2]. - Reports indicated that Blue Owl Capital withdrew from funding a $10 billion data center project for Oracle, further exacerbating concerns about the company's financial commitments and rising debt levels [2].