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ORCL.US
id: 339
N.D. California
Court
10 May 2017
Class period Start
20 Jun 2018
Class period End
03 Feb 2023
Claim deadline
In Oracle Corporation Litigation.

Oracle Corporation (ORCL) agreed to pay $17.5 million to settle a securities class action lawsuit accusing the Company of deceiving investors about the true drivers of the Company's cloud revenue growth.
The original complaint alleged that the Company issued false and misleading press releases, filings with the SEC, and statements during investor and analyst conference calls. Particularly, it alleged that:
  • the Company and its Leaders misrepresented the true drivers of the Company's cloud revenue growth attributing the Company's revenue growth in its cloud segment to a variety of factors and initiatives, including, among other things, Oracle's "unprecedented level of automation and cost savings," as well as the Company being "customer-focused" and "intimate partners with our customer."
  • According to the complaint, In truth, Oracle drove sales of cloud products using threats and extortive tactics. The use of such tactics concealed the lack of real demand for Oracle's cloud services, making the growth unsustainable and ultimately driving away customers. Among other things, the Company threatened current customers with "audits" of their use of the Company's non-cloud software licenses unless the customers agreed to shift their business to Oracle cloud programs.
The truth was revealed on March 19, 2018, when the Company disclosed that cloud revenue growth had stagnated and forecasted significantly slower sales growth for its cloud business than its competitors. Following these disclosures, analysts and market commentators connected Oracle's poor financial performance to its improper sales tactics. As a result of these disclosures, the price of the Company's stock declined significantly.

Oracle (ORCL) agreed to settle with investors to avoid further litigation.
Case Status
Disbursed
Alleged Offence
Other
Suspected Party
Other
Security Type
Stocks
Trade Direction
Long
Plaintiffs
City of Sunrise Firefighters’ Pension Fund, Union Asset Management Holding AG
Attorneys
Bernstein Litowitz Berger & Grossmann LLP (New York)
Judge
Hon. Beth Labson Freeman
Administrator
A.B. Data Ltd
Court hearing date
12 January 2023
Trades matching type
FIFO
+$17,500,000
Cash Settlement Amount

Oracle Corporation

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software...

    Ticker
    ORCL.US
    ISIN
    US68389X1054
    CIK
    1341439
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    2300 Oracle Way, Austin, TX, United States, 78741