Oracle Complaint Overview
The Oracle class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Oracle common stock. The class action is pending in the U.S. District Court for the District of Delaware. It is captioned Barrows v. Oracle Corporation, et al., No. 1:26-cv-00127.
If you lost money on your Oracle investment, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why is Oracle Being Sued for Securities Fraud?
Oracle Corporation has been sued for securities fraud following significant stock drops resulting from potential violations of the federal securities laws. The decline in Oracle’s stock price caused significant losses to investors.
Oracle sells database software, enterprise applications, and cloud infrastructure and hardware. In recent years, Oracle has shifted its focus from providing database software to becoming a provider of cloud infrastructure. Today, Oracle is increasingly focused on supplying the cloud computing infrastructure necessary to train and deploy advanced AI models.
As alleged, Oracle misled investors by touting data center development contracts to build AI infrastructure while falsely assuring investors that Oracle’s significant and growing CapEx required to build out its AI capabilities, would rapidly translate to “accelerating revenue and profit growth” and that “we have a very good line-of-sight for our capabilities to . . . just spend on that CapEx right before it starts generating revenue.”
Why did Oracle’s Stock Drop?
On September 24, 2025, S&P reiterated its negative outlook for Oracle’s credit rating citing concerns about the growing risks resulting from Oracle’s spending strategy and increasing dependence on its relationship with OpenAI, which had recently agreed to purchase $300 billion in computing power from Oracle over five years.
This news caused the price of Oracle stock to decline $5.37 per share, or 2%, from a closing price of $313.83 per share on September 23, 2025, to $308.46 per share on September 24, 2025.
The next day, September 25, 2025, Rothschild initiated coverage of Oracle with a “Sell” rating, set a share price target of $175, and warned that the market “materially overestimates the value of Oracle’s contracted cloud revenues” and that Oracle’s projections of AI-driven revenue is a “risky blue-sky scenario that is unlikely to materialize.”
This news caused the price of Oracle stock to drop $17.13 per share, or 5.5%, from a closing price of $308.46 per share on September 24, 2025, to $291.33 per share on September 25, 2025.
Then, on December 10, 2025, Oracle reported 2Q 2026 revenue growth below analyst expectations, CapEx well above analysts’ expectations, and negative free cash flow of more than $10 billion. Oracle also failed to increase its revenue projections for 2026, despite the increase in spending, and only increased its revenue projections for 2027 by $4 billion.
This news caused the price of Oracle stock to decline $24.16 per share, or nearly 11%, from a closing price of $223.01 per share on December 10, 2025, to $198.85 per share on December 11, 2025.
Next, on December 11, 2025, Oracle disclosed “$248 billion of additional lease commitments, substantially all related to data centers and cloud capacity arrangements, that are generally expected to commence between the third quarter of fiscal 2026 and fiscal 2028 . . . that were not reflected on our condensed consolidated balance sheets as of November 30, 2025.”
The next day, December 12, 2025, Bloomberg reported that Oracle had “pushed back the completion dates for some of the data centers it’s developing” for Open AI “to 2028 from 2027” due to “labor and material shortages.”
The news on December 11 and 12, 2025 caused the price of Oracle stock to drop $8.88 per share, or approximately 4.5%, from a closing price of $198.85 per share on December 11, 2025, to $189.97 per share on December 12, 2025.
Finally, on December 17, 2025, Financial Times reported that Blue Owl Capital—“the primary backer of Oracle’s largest data centre projects in the US”—had backed out of funding a $10 billion Oracle data center for OpenAI out of concerns about Oracle’s spending commitments and increasing debt.
This news caused the price of Oracle stock to decline $10.19 per share, or approximately 5.4%, from a closing price of $188.65 per share on December 16, 2025, to $178.46 per share on December 17, 2025.
Oracle (ORCL) Stock Chart
NYSE online chart showing the Oracle (ORCL) stock drops following the September and December 2025 news.
What is the Oracle Leadership Deadline?
You may ask the Court no later than April 6, 2026, to appoint you as Lead Plaintiff through counsel of your choice.
To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
How Do I Submit My Information?
If you lost money when Oracle stock dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
adam@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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