Overview

A class action lawsuit has been filed against Oracle Corporation (“Oracle” or the “Company”) (NYSE : ORCL) and certain of the Company’s senior executive officers (collectively, “Defendants”) alleging violations of the federal securities laws. The Oracle lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Oracle securities between June 12, 2025, and December 16, 2025, inclusive (the “Class Period”). Investors have until April 6, 2026, to seek appointment as lead plaintiff of the Oracle class action lawsuit.

Oracle is a technology company that provides, among other things, infrastructure for operating artificial intelligence (“AI”) programs.

The Oracle class action lawsuit alleges that Defendants misled investors by touting the Company’s contracts to develop data center capabilities for AI infrastructure and falsely assuring investors that the Company’s significant capital expenditures (“CapEx”) would quickly result in accelerated revenue growth. For example, Defendants assured investors that the Company’s substantially increased spending on AI infrastructure would rapidly convert into “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.”  Defendants also told investors that the demand for AI products is “astronomical” and “insatiable,” adding “I’ve never seen anything remotely like this.” 

In truth, the complaint alleges that Defendants misrepresented and/or failed to disclose that: (1) the Company’s AI infrastructure strategy would result in massive increases in the Company’s CapEx without equivalent, near-term growth in revenue; and (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.

The truth started to emerge on September 24, 2025, when S&P Global Ratings reiterated its recently issued negative outlook for Oracle’s credit rating, citing concerns about the growing risks resulting from Oracle’s spending strategy and increasing reliance on OpenAI. Specifically, S&P 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 because “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.” On this news, the price of Oracle common stock declined $5.37 per share, or nearly 2%, from a close of $313.83 per share on September 23, 2025, to close at $308.46 per share on September 24, 2025.

The next day, on September 25, 2025, media outlets reported that Rothschild & Co. Redburn (“Rothschild”) had initiated coverage of Oracle at “Sell” and set a $175 price target for Oracle—representing a 40% pullback in Oracle’s stock. Specifically, Rothschild warned that the market “materially overestimates the value of Oracle’s contracted cloud revenues” and that the Company’s sky-high projections of AI-driven revenues represented a “risky blue-sky scenario that is unlikely to materialize.” Rothschild further characterized Oracle’s position as “closer to that of a financier than a cloud provider.” On this news, the price of Oracle common stock declined an additional $17.13 per share, or more than 5.5%, from a close of $308.46 per share on September 24, 2025, to close at $291.33 per share on September 25, 2025.

Then, on December 10, 2025, Oracle announced disappointing second quarter 2026 financial results, including revenue growth below analysts’ consensus estimate, quarterly CapEx well above analysts’ estimates, and negative free cash flow of more than $10 billion. 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.

Then, on December 12, 2025, Bloomberg 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.” On this news, price of Oracle common stock declined $8.88 per share, or approximately 4.5%, from a close of $198.85 per share on December 11, 2025, to close at $189.97 per share on December 12, 2025.

Finally, on December 17, 2025, Financial Times reported that Blue Owl Capital— “the primary backer for Oracle’s largest data centre projects in the US,” having invested “its own money and rais[ed] billions more in debt to build the facilities”—had backed out of funding a $10 billion Oracle data center intended to serve OpenAI. According to Financial Times, Blue Owl pulled out of the deal because of concerns about Oracle’s spending commitments and rising debt levels. On this news, the price of Oracle common stock declined $10.19 per share, or more than 5%, from a close of $188.65 per share on December 16, 2025, to close at $178.46 per share on December 17, 2025.

*          *          *

If you purchased or otherwise acquired Oracle securities between June 12, 2025, and December 16, 2025, and you wish to serve as lead plaintiff in this lawsuit, you are encouraged to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Oracle class action lawsuit is April 6, 2026.