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Lead Plaintiff Deadline
Apr 6, 2026
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The filed complaint alleges that Oracle Corporation made materially false and/or misleading statements and/or failed to disclose that: (1) the Company’s AI infrastructure strategy would result in massive increases in capital expenditures without equivalent, near-term growth in revenue; (2) 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 (3) as a result, defendants’ representations about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
In order to be eligible to join the ORCL class action lawsuit, you must have incurred a loss on shares of Oracle purchased during the class period listed above.
If you suffered a loss in Oracle during the relevant time frame or pursuant to the relevant offering(s), you have until April 6, 2026 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
A federal securities fraud class action has been filed against Oracle Corporation (NYSE: ORCL) in the U.S. District Court for the District of Delaware, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The case covers investors who acquired Oracle common stock (NYSE: ORCL) between June 12, 2025 and December 16, 2025, inclusive. Investors allege Oracle and senior executives misled the market by touting AI data center and artificial intelligence infrastructure contracts and assuring that heavy capital spending would quickly drive accelerating revenue and profit growth.
The story that followed featured ratings and analyst warnings, disappointing results showing revenue below expectations, far higher capital expenditures including a fiscal year 2026 projection of $50 billion, negative free cash flow exceeding $10 billion in Q2 FY2026, massive long-term commitments such as $248 billion in lease obligations, project delays (pushing certain data center completion dates to 2028), and funding strain after a reported $10 billion financing withdrawal by Blue Owl Capital. The Complaint alleges that Oracle’s stock price declined in response to the September and December 2025 disclosures, including single-day percentage declines cited in the pleading.
“Most ORCL shareholders never file or join the class action, which means they miss out on potential recovery funds,” said Attorney Joseph Levi.
Case Name: Barrows v. Oracle Corporation et al.
Case No.: 1:26-cv-00127-UNA
Jurisdiction: U.S. District Court, District of Delaware
Filed on: February 3, 2026
Oracle is a technology company, a Delaware corporation based in Austin, Texas that offers database software, enterprise applications such as customer relationship management and supply chain management, and cloud infrastructure and hardware, operating large-scale data centers and AI infrastructure for high-intensity workloads, including infrastructure for operating AI programs used by customers such as OpenAI.
June 12, 2025 - December 16, 2025, inclusive.
All persons and entities who purchased or otherwise acquired Oracle common stock (NYSE: ORCL) during the Class Period may be eligible to join the Oracle Corporation (ORCL) class action lawsuit.
The lawsuit targets Oracle Corporation and executives Lawrence J. Ellison, Safra A. Catz, Clayton Magouyrk, Michael Sicilia, Douglas Kehring, and Maria Smith. According to the complaint, they told investors that Oracle's AI infrastructure push-and the significant capital expenditures behind it-would swiftly translate into accelerating revenue and profits, supported by major contracts and growing demand, thereby materially overstating AI revenue potential.
The narrative began on June 11, 2025, when CEO Safra Catz declared that FY26 would be "even better" than FY25, with total cloud growth expected to top 40% and Oracle Cloud Infrastructure growth to exceed 70%, while Executive Chairman and CTO Larry Ellison said OCI consumption revenue grew 62% in Q4 and would grow even faster in FY26. That same day, Catz told investors that most CapEx was revenue-generating equipment going into data centers and that bringing capacity online would further accelerate revenue and profit growth. The message was clear: spend now, reap revenue quickly from AI infrastructure.
As the Class Period progressed, on September 9, 2025, Catz announced four multi-billion-dollar contracts, credited them with driving a 359% jump in remaining performance obligations to $455 billion, and again linked the backlog to "accelerating revenue and profit growth," through a press release and earnings call. She reinforced timing, saying Oracle had "very good line-of-sight" to deploy capacity and would "spend on that CapEx right before it starts generating revenue." These statements painted a near-term payoff from AI infrastructure investment, linking spending to immediate revenue realization.
Meanwhile, investors allege the truth was different: Oracle's AI infrastructure strategy would require massive increases in capital expenditures to a projected $50 billion in fiscal year 2026 without equivalent near-term revenue, and the substantially increased spending posed serious risks to Oracle's debt and credit rating, free cash flow, and ability to fund its projects, including potential pressure on its BBB/Baa2 credit rating. As a result, the complaint alleges the Company's statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The curtain began to lift on September 24, 2025, when S&P Global Ratings warned that OpenAI could account for more than a third of Oracle's total revenues by fiscal 2028-and even more by 2030-citing concentration risk. The next day, September 25, 2025, Rothschild & Co. Redburn initiated coverage at Sell, stating the market was materially overestimating growth from Oracle's AI deals and that the promised massive new revenues were unlikely to materialize, setting a $175 price target.
Reality crystallized on December 10, 2025, when Oracle announced second quarter fiscal 2026 results: revenue growth came in below analysts' consensus, quarterly CapEx was well above estimates, and free cash flow was negative by more than $10 billion. On that call, Principal Financial Officer Douglas Kehring revealed Oracle now projected $50 billion of CapEx in FY26-$15 billion above its September 2025 projection-while Co-CEO Clayton Magouyrk declined to give a specific funding figure, saying only that spending would be "less" than $100 billion.
The next day, December 11, 2025, Oracle's Form 10-Q disclosed $248 billion of additional lease commitments, substantially all for data centers and cloud capacity over terms of fifteen to nineteen years. On December 12, 2025, Bloomberg reported Oracle had pushed back some OpenAI-related data center completion dates to 2028 from 2027 due to labor and material shortages, and on December 17, 2025, the Financial Times reported that Blue Owl Capital had backed out of funding a $10 billion Oracle data center intended to serve OpenAI.
These disclosures contradicted earlier assurances about rapid revenue generation, capital efficiency, funding capabilities, and project timelines tied to Oracle's AI infrastructure program, collectively serving as corrective disclosures.
Investors reacted in real time. On September 24, 2025, after S&P's warning, Oracle's stock fell $5.37, nearly 2%, closing at $308.46 from $313.83 the prior day. The next day, September 25, 2025, following Rothschild & Co. Redburn's Sell initiation, shares dropped another $17.13, more than 5.5%, to close at $291.33.
Earnings landed after the market closed on December 10, 2025, and on December 11 the stock declined $24.16, nearly 11%, to close at $198.85 from $223.01. After Oracle filed its Form 10-Q following the close on December 11 and Bloomberg reported delays, the stock fell $8.88 on December 12, approximately 4.5%, to close at $189.97. On December 17, 2025, after the Financial Times reported Blue Owl Capital withdrew from funding a $10 billion data center, shares declined $10.19, approximately 5.4%, to close at $178.46 from $188.65 on December 16, bringing the cumulative stock price decline during the Class Period to roughly 26%.
The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.
The Court will then consider motion for class certification.
The Court will later consider a motion to dismiss.
Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.
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