Core Viewpoint - A securities fraud class action lawsuit has been filed against Oracle Corporation, alleging that the company misled investors regarding its AI infrastructure investments and revenue growth potential during the specified Class Period from June 12, 2025, to December 16, 2025 [1]. Group 1: Allegations of Misconduct - Oracle allegedly misled investors by promoting its AI infrastructure contracts and falsely assuring that increased capital expenditures (CapEx) would lead to rapid revenue growth [4]. - S&P Global Ratings warned that OpenAI could account for over a third of Oracle's total revenues by fiscal 2028, raising concerns about the sustainability of Oracle's revenue projections [4]. - Following negative analyst reports and disappointing financial results, Oracle's stock price experienced significant declines, including a drop of $5.37 (nearly 2%) on September 24, 2025, and an additional decline of $17.13 (over 5.5%) on September 25, 2025 [5]. Group 2: Financial Performance and Projections - Oracle reported financial results for Q2 fiscal year 2026 that included revenue growth below analysts' expectations and negative free cash flow exceeding $10 billion [6]. - The company projected $50 billion in CapEx for fiscal year 2026, significantly higher than previous estimates, yet did not increase its revenue guidance for 2026 [6][10]. - Analysts noted a "bombshell disclosure" regarding Oracle's lease commitments, which increased to $248 billion, far exceeding previous commitments and raising concerns about the company's financial health [10]. Group 3: Market Reactions and Stock Performance - Following the announcement of increased lease commitments and delays in data center projects, Oracle's stock fell by $8.88 (approximately 4.5%) on December 12, 2025 [10]. - The withdrawal of Blue Owl Capital from a $10 billion funding deal for Oracle's data center projects led to a further decline in stock price by $10.19 (about 5.4%) on December 17, 2025 [11]. - The cost of protecting Oracle's debt against default reached its highest level since April 2009, indicating rising credit risk and investor concerns [9].

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].