Class Action Lawsuit Filed Against Oracle Corporation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy ORCL?
Source: Businesswire
- Lawsuit Background: A class action lawsuit has been filed by the Law Offices of Howard G. Smith on behalf of investors who purchased Oracle Corporation (NYSE:ORCL) securities between June 12, 2025, and December 16, 2025, with a deadline for lead plaintiff motions set for April 6, 2026, to protect their legal rights.
- Stock Price Volatility: On September 25, 2025, Oracle's stock fell 5.6% to $291.33 after analysts warned that the company's AI business growth was overestimated; further, on December 10, the company missed revenue expectations, causing a 10.8% drop to $198.85, indicating significant market concerns about its financial health.
- Project Delays: On December 12, 2025, Oracle announced delays in completing data centers for OpenAI until 2028 due to labor and material shortages, resulting in a 4.5% decline in stock price to $189.97, highlighting execution challenges in its strategic initiatives.
- Funding Risks: On December 17, 2025, Oracle's primary financial backer, Blue Owl Capital, withdrew funding for a $10 billion data center project due to concerns over Oracle's spending commitments and rising debt levels, leading to a further 5.4% drop in stock price to $178.46, exacerbating investor losses.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 146.670
Low
180.00
Averages
309.59
High
400.00
Current: 146.670
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oracle Corporation Faces Class Action Lawsuit
- Debt Financing Issues: Oracle issued $18 billion in Senior Notes on September 25, 2025, to fund its AI infrastructure expansion, yet failed to disclose the need for an additional $38 billion in debt, potentially undermining investor confidence.
- Major Contract Announcement: On September 10, 2025, Oracle signed a $300 billion, five-year cloud computing contract with OpenAI to provide computing power, which, while increasing market attention, raised concerns about Oracle's financial health.
- Rising Credit Risk: Reports on November 13, 2025, indicated Oracle's plans to raise an additional $38 billion through bank loans to support its AI initiatives, causing its Senior Notes to trade with yields and spreads similar to lower-rated issuers, reflecting market concerns over credit risk.
- Legal Action Notification: Robbins LLP is reminding affected bondholders to participate in the class action against Oracle, highlighting serious issues in the company's transparency and governance structure that could impact future investor trust.
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- Lawsuit Background: A class action lawsuit has been filed by the Law Offices of Howard G. Smith on behalf of investors who purchased Oracle Corporation (NYSE:ORCL) securities between June 12, 2025, and December 16, 2025, with a deadline for lead plaintiff motions set for April 6, 2026, to protect their legal rights.
- Stock Price Volatility: On September 25, 2025, Oracle's stock fell 5.6% to $291.33 after analysts warned that the company's AI business growth was overestimated; further, on December 10, the company missed revenue expectations, causing a 10.8% drop to $198.85, indicating significant market concerns about its financial health.
- Project Delays: On December 12, 2025, Oracle announced delays in completing data centers for OpenAI until 2028 due to labor and material shortages, resulting in a 4.5% decline in stock price to $189.97, highlighting execution challenges in its strategic initiatives.
- Funding Risks: On December 17, 2025, Oracle's primary financial backer, Blue Owl Capital, withdrew funding for a $10 billion data center project due to concerns over Oracle's spending commitments and rising debt levels, leading to a further 5.4% drop in stock price to $178.46, exacerbating investor losses.
See More
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- Investor Losses: Investors are encouraged to contact the firm before April 6, 2026, to potentially participate in claims if they suffered losses during the class period, highlighting the lawsuit's implications for investor rights.
- False Statement Allegations: The complaint alleges that Oracle made false and misleading statements regarding its AI infrastructure strategy, leading to significant investor losses when the truth emerged, indicating serious flaws in the company's capital expenditure and debt risk management.
- Lack of Legal Representation: The class has not yet been certified, meaning investors are not currently represented by an attorney, underscoring the importance of timely action in legal proceedings to protect their rights.
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- Significant Stock Decline: Oracle's stock fell 15.8% in the week ending Thursday, with a nearly 29% drop in 2026, reflecting market concerns over its investments in AI infrastructure amid rising costs.
- Spike in CDS Pricing: The company's credit default swap prices surged in November, and although Oracle's successful $25 billion bond sale alleviated some fears, investor concerns remain high regarding its financial stability.
- Risks with OpenAI: Oracle's $300 billion deal with OpenAI raises cash flow concerns, especially as OpenAI is not expected to be profitable until 2030, with HSBC estimating it requires over $200 billion to fund its growth plans.
- Class Action Lawsuit: Oracle is facing a class action lawsuit from dissatisfied bond investors who claim the company failed to disclose its need for significantly more debt when issuing bonds, further intensifying market worries about its financial transparency.
See More
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- Debt Financing Issues: Oracle issued $18 billion in Senior Notes on September 25, 2025, to fund its AI infrastructure expansion, yet failed to disclose the need for an additional $38 billion in debt, potentially undermining investor confidence.
- Major Contract Announcement: On September 10, 2025, Oracle signed a $300 billion, five-year cloud computing contract with OpenAI to provide computing power, which, while increasing market attention, raised concerns about Oracle's financial health.
- Rising Credit Risk: Reports on November 13, 2025, indicated Oracle's plans to raise an additional $38 billion through bank loans to support its AI initiatives, causing its Senior Notes to trade with yields and spreads similar to lower-rated issuers, reflecting market concerns over credit risk.
- Legal Action Notification: Robbins LLP is reminding affected bondholders to participate in the class action against Oracle, highlighting serious issues in the company's transparency and governance structure that could impact future investor trust.
See More
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- Growing Market Demand: As more companies scramble to upgrade their AI infrastructure, the demand for data center REITs is expected to soar in the coming years, positioning Digital Realty as a leading player to capitalize on this trend and ensure long-term growth potential.
- Profitability Improvement: Digital Realty's core funds from operations (FFO) per share are projected to rise by 9%-10% in 2025, reaching $7.32 to $7.38 per share, which comfortably covers its forward dividend of $4.88 per share, demonstrating its stable profitability and appeal.
- Leasing Model Advantage: As a triple-net-lease data center REIT, Digital Realty's tenants are responsible for maintenance, insurance, and property taxes, which reduces operational risks and allows the company to focus on core business growth while maintaining high dividend payouts.
- Attractive Valuation for Investors: With a current stock price of $165 and a price-to-earnings ratio of 22, Digital Realty presents a relatively reasonable valuation compared to higher-growth AI stocks, making it an appealing choice for conservative investors seeking stable dividends.
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- Lawsuit Background: A class action lawsuit has been filed by the Law Offices of Howard G. Smith on behalf of investors who purchased Oracle Corporation (NYSE:ORCL) securities between June 12, 2025, and December 16, 2025, with a deadline for lead plaintiff motions set for April 6, 2026, to protect their legal rights.
- Stock Price Volatility: On September 25, 2025, Oracle's stock fell 5.6% to $291.33 after analysts warned that the company's AI business growth was overestimated; further, on December 10, the company missed revenue expectations, causing a 10.8% drop to $198.85, indicating significant market concerns about its financial health.
- Project Delays: On December 12, 2025, Oracle announced delays in completing data centers for OpenAI until 2028 due to labor and material shortages, resulting in a 4.5% decline in stock price to $189.97, highlighting execution challenges in its strategic initiatives.
- Funding Risks: On December 17, 2025, Oracle's primary financial backer, Blue Owl Capital, withdrew funding for a $10 billion data center project due to concerns over Oracle's spending commitments and rising debt levels, leading to a further 5.4% drop in stock price to $178.46, exacerbating investor losses.
See More
Oracle Corporation Faces Class Action Lawsuit Over Securities Violations
- Lawsuit Reminder: The Schall Law Firm alerts investors that Oracle Corporation is facing a class action lawsuit for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between June 12, 2025, and December 16, 2025.
- Investor Losses: Investors are encouraged to contact the firm before April 6, 2026, to potentially participate in claims if they suffered losses during the class period, highlighting the lawsuit's implications for investor rights.
- False Statement Allegations: The complaint alleges that Oracle made false and misleading statements regarding its AI infrastructure strategy, leading to significant investor losses when the truth emerged, indicating serious flaws in the company's capital expenditure and debt risk management.
- Lack of Legal Representation: The class has not yet been certified, meaning investors are not currently represented by an attorney, underscoring the importance of timely action in legal proceedings to protect their rights.
See More
Digital Realty: A New Investment Choice for Cloud and AI
- Core Profit Growth: Digital Realty's core funds from operations (FFO) per share is projected to rise from $6.22 in 2020 to $7.32-$7.38 by 2025, reflecting a 9%-10% CAGR, which easily covers its forward dividend of $4.88 per share, demonstrating stable profitability and cash flow.
- Occupancy Rate Expectations: While maintaining occupancy rates in the mid-80s over the past five years, Digital Realty anticipates an increase of 100-200 basis points to 83.9%-84.9% by 2025, indicating sustained demand in the data center market and bolstering investor confidence.
- Attractive Dividend Yield: With a dividend yield of 2.9%, Digital Realty appears particularly appealing in the current interest rate environment, especially for conservative income-oriented investors, as its lower valuation offers a favorable alternative to higher-growth AI stocks.
- Rising Market Demand: As more companies scramble to upgrade their AI infrastructure, the demand for Digital Realty's AI-ready data centers is expected to soar in the coming years, driving long-term growth, even if its growth rate may not match that of Nvidia or Palantir.
See More
Oracle Stock Drops 15.8% Amid AI Exposure Concerns
- Significant Stock Decline: Oracle's stock fell 15.8% in the week ending Thursday, with a nearly 29% drop in 2026, reflecting market concerns over its investments in AI infrastructure amid rising costs.
- Spike in CDS Pricing: The company's credit default swap prices surged in November, and although Oracle's successful $25 billion bond sale alleviated some fears, investor concerns remain high regarding its financial stability.
- Risks with OpenAI: Oracle's $300 billion deal with OpenAI raises cash flow concerns, especially as OpenAI is not expected to be profitable until 2030, with HSBC estimating it requires over $200 billion to fund its growth plans.
- Class Action Lawsuit: Oracle is facing a class action lawsuit from dissatisfied bond investors who claim the company failed to disclose its need for significantly more debt when issuing bonds, further intensifying market worries about its financial transparency.
See More
