STOCK NEWS: Oracle Corporation Sued for Securities Fraud after 11% Stock Drop — Investors Notified to Contact BFA Law by April 6 Class Action Deadline

NEW YORK–(BUSINESS WIRE)–$ORCL #AI–Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Oracle Corporation (NYSE:ORCL) and certain of the Company’s senior executives for securities fraud after significant stock drops resulting from the potential violations of the federal securities laws.

If you invested in Oracle, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/oracle-class-action-lawsuit.

Investors have until April 6, 2026 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Oracle common stock. The case is pending in the U.S. District Court for the District of Delaware and is captioned Barrows v. Oracle Corporation, et al., No. 1:26-cv-00127.

Why is Oracle Being Sued for Securities Fraud?

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.

Oracle allegedly 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.”

As alleged, in truth, Oracle’s AI strategy was drastically increasing the company’s CapEx without producing meaningful near-term revenue. The ballooning CapEx without offsetting revenue created risks to Oracle’s debt and credit rating, free cash flow, and ability to fund its projects.

Why did Oracle’s Stock Drop?

Investors allegedly learned the truth over a series of disclosures in September and December 2025. Most prominently, 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 drop $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.

Click here for more information: https://www.bfalaw.com/cases/oracle-class-action-lawsuit.

What Can You Do?

If you invested in Oracle, you may have legal options and are encouraged to submit your information to the firm.

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 litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/oracle-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

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, and its 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. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/oracle-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

Contacts

Adam McCall
[email protected]
212.789.3619