Lawsuit filed for Investors who lost money with shares of Oracle Corporation (NYSE: ORCL)

An investor, who purchased shares of Oracle Corporation (NYSE: ORCL), filed a lawsuit over alleged violations of Federal Securities Laws by Oracle Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Oracle Corporation (NYSE: ORCL) have certain options and for certain investors are short and strict deadlines running. Deadline: April 6, 2026. NYSE: ORCL investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Austin, TX based Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Oracle Corporation (NYSE: ORCL) reported that its Total Revenue rose from over $52.96 billion for the 12 months period that ended on May 31, 2024, to over $57.39 billion for the 12 months period that ended on May 31, 2025, and that its Net Income for those respective time periods rose from over $10.46 billion to over $12.44 billion.

However, on September 24, 2025, S&P Global Ratings warned that OpenAI "could account for more than a third of total Oracle revenues by fiscal 2028 and even a greater share by fiscal 2030," creating risks given that "OpenAI's ability to meet contractual obligations will be contingent on AI tailwinds continuing and its models being a market leader to continue to raise external financing."

The following day, on September 25, 2025, analysts at Rothschild & Co. Redburn initiated coverage of Oracle at "Sell," warning, among other things, that the Company's promises of massive new revenues from its increased AI infrastructure business were "unlikely to materialize" and set a $175 price target for Oracle-representing a 40% pullback in the Company's stock.

After the market closed on December 10, 2025, Oracle announced its financial results for the second quarter of fiscal year 2026, including revenue growth below analysts' consensus estimate, quarterly CapEx well above analysts' estimates, and negative free cash flow of more than $10 billion. During the accompanying earnings call, Defendant Douglas Kehring (the Company's Principal Financial Officer) revealed that Oracle now projected $50 billion of CapEx in fiscal year 2026-$15 billion more than the Company's previous projection in September 2025 and as much as $25 billion more than the Company's projection in June 2025. Notably, despite projecting substantially increased spending, Oracle did not increase its guidance for 2026 revenue, and increased its guidance for 2027 revenues by only $4 billion.

In response to an analyst's question about how much money Oracle needs "to raise to fund its AI growth plans ahead," Defendant Clayton Magouyrk (the Company's new Co-Chief Executive Officer) further stoked concerns by failing to provide a specific number and revealing only that the Company expected to spend "less" than $100 billion-suggesting that Oracle may require a massive amount of capital funding through equity raises or additional debt.

As Bloomberg and other media outlets reported that evening, the cost of protecting the Company's debt against default for five years-a notable measure of Oracle's credit risk-reached its highest level since April 2009. An AllianceBernstein analyst explained, "Oracle really matters because it is the harbinger of the AI capex boom," and "[t]his repricing in debt markets is very consistent with the view that risks are building." On this news, the price of Oracle common stock declined $24.16 per share, or nearly 11%, from a close of $223.01 per share on December 10, 2025, to close at $198.85 per share on December 11, 2025.
After the market closed on December 11, 2025, Oracle filed its quarterly financial report on Form 10-Q with the SEC, which revealed that the Company had "$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 and for terms of fifteen to nineteen years that were not reflected on our condensed consolidated balance sheets as of November 30, 2025." Analysts at CreditSights later labeled this revelation a "bombshell disclosure," noting that the Company's lease commitments had increased massively from the prior quarter, when the Company had reported just under $100 billion in lease commitments. As Bloomberg reported, "Oracle's future lease exposure far exceeds similar commitments by peers," with "a mismatch between the long duration of the property leases and much shorter contracts with key customers such as OpenAI."

On December 12, 2025, Bloomberg further reported that Oracle had "pushed back the completion dates for some of the data centers it's developing for the artificial intelligence model developer OpenAI to 2028 from 2027" due to "labor and material shortages"-suggesting that Oracle's promised revenue growth resulting from its increased spending may be further delayed, if it arrives at all.

On December 17, 2025, Financial Times reported that Blue Owl Capital-"the primary [financial] backer for Oracle's largest data centre projects in the US"-had backed out of funding a $10 billion Oracle data center intended to serve OpenAI. According to the report, Blue Owl pulled out of the deal as a result of concerns about Oracle's spending commitments and rising debt levels.

Shares of Oracle Corporation (NYSE: ORCL) declined from $345.72 per share on September 10, 2025, to as low as $135.25 per share on February 05, 2026.

The plaintiff claims that between June 12, 2025, and December 16, 2025, the Defendants misrepresented and/or failed to disclose that Oracle's AI infrastructure strategy would result in massive increases in CapEx without equivalent, near-term growth in revenue, that the Company's substantially increased spending created serious risks involving Oracle's debt and credit rating, free cash flow, and ability to fund its projects, among other concerns, and that as a result, Defendants' representations about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

Those who purchased shares of Oracle Corporation (NYSE: ORCL) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.