The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired Oracle Corporation (“Oracle” or the “Company”) (NYSE: ORCL) securities between June 12, 2025 and December 16, 2025, inclusive (the “Class Period”). Oracle investors have until April 6, 2026 to file a lead plaintiff motion.

Investors with losses exceeding $50,000 are encouraged to contact the firm

What Happened?

On September 25, 2025, analysts at Rothschild & Co. Redburn claimed that the market was “materially overestimate[ing]” future growth resulting from Oracle’s AI deals, warning that the Company’s promises of new revenues from its increased AI infrastructure business were “unlikely to materialize.”

On this news, Oracle’s stock price fell $17.13, or 5.6%, to close at $291.33 per share on September 25, 2025, thereby injuring investors.

Then, on December 10, 2025, Oracle released its second quarter fiscal 2026 financial results, missing consensus estimates in revenue growth, capital expenditures (“CapEx”), and negative free cash flow. The Company further revealed that it “now expect[ed] fiscal 2026 CapEx will be about $15 billion higher than [it] forecasted after Q1.”

On this news, Oracle’ stock price fell $24.16, or 10.8%, to close at $198.85 per share on December 11, 2025.

Further, 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, Oracle’s stock price fell $8.88, or 4.5%, to close at $189.97 per share on December 12, 2025.

Finally, on December 17, 2025, Financial Times reported that Oracle’s primary financial backer for its data center projects, Blue Owl Capital, had backed out of funding a $10 billion Oracle data center intended to serve OpenAI due to concerns about Oracle’s spending commitments and rising debt levels.

On this news, Oracle’s stock price fell $10.19, or 5.4%, to close at $178.46 per share on December 17, 2025, thereby injuring investors further.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Oracle’s AI infrastructure strategy would result in massive increases in CapEx 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’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.