Oracle Corporation Class Action Lawsuit Initiated
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy ORCL?
Source: Globenewswire
- Class Action Initiation: Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against Oracle Corporation for investors who purchased shares between June 12, 2025, and December 16, 2025, alleging violations of the Securities Exchange Act of 1934, which could result in significant losses for investors.
- Capital Expenditure Risks: The lawsuit claims that Oracle's AI infrastructure strategy will lead to massive increases in capital expenditures without corresponding near-term revenue growth, posing serious risks to the company's debt and credit rating, as well as its ability to fund projects.
- Analyst Warnings: On September 25, 2025, analysts at Rothschild & Co. Redburn downgraded Oracle to
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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: 136.480
Low
180.00
Averages
309.59
High
400.00
Current: 136.480
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 Class Action Lawsuit Initiated
- Class Action Initiation: Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against Oracle Corporation for investors who purchased shares between June 12, 2025, and December 16, 2025, alleging violations of the Securities Exchange Act of 1934, which could result in significant losses for investors.
- Capital Expenditure Risks: The lawsuit claims that Oracle's AI infrastructure strategy will lead to massive increases in capital expenditures without corresponding near-term revenue growth, posing serious risks to the company's debt and credit rating, as well as its ability to fund projects.
- Analyst Warnings: On September 25, 2025, analysts at Rothschild & Co. Redburn downgraded Oracle to
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- Allegation Details: The complaint claims that Oracle's AI infrastructure strategy led to massive increases in capital expenditures without corresponding near-term revenue growth, while the increased spending posed serious risks to the company's debt, credit rating, and free cash flow.
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Oracle Corporation Class Action Lawsuit Initiated
- Class Action Initiation: Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against Oracle Corporation for investors who purchased shares between June 12, 2025, and December 16, 2025, alleging violations of the Securities Exchange Act of 1934, which could result in significant losses for investors.
- Capital Expenditure Risks: The lawsuit claims that Oracle's AI infrastructure strategy will lead to massive increases in capital expenditures without corresponding near-term revenue growth, posing serious risks to the company's debt and credit rating, as well as its ability to fund projects.
- Analyst Warnings: On September 25, 2025, analysts at Rothschild & Co. Redburn downgraded Oracle to
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- Market Performance: The week was challenging for markets, but it concluded with a surge of optimism among investors.
- Dow 50K Discussion: The article focuses on the potential for the Dow Jones Industrial Average to reach the 50,000 mark, highlighting the factors that could contribute to this milestone.
- Investor Sentiment: Despite recent difficulties, there is a renewed sense of hope and positive sentiment in the market, suggesting a possible recovery.
- Future Outlook: Analysts are considering the implications of reaching the Dow 50K and what it could mean for the broader economy and investment strategies.
See More
Bond Market Skepticism Grows Over AI Sustainability
- Bond Market Pressure: Oracle's credit default swap (CDS) pricing surged in November, currently at nearly four times the levels seen in September, indicating bond market concerns over its debt, particularly regarding its $300 billion deal with OpenAI.
- Capital Expenditure Risks: Oracle faces challenges related to the ballooning costs of building data center infrastructure to support AI growth, with market skepticism surrounding OpenAI's internal projections of burning through over $100 billion in cash before 2030.
- Divergent Stock Market Performance: While the bond market remains cautious about Oracle and Microsoft, the equity market continues to invest in AI companies, with Alphabet showing stronger performance due to minimal exposure to OpenAI and a better financial position.
- Bubble Risk Assessment: History suggests that companies often overreach during technological revolutions, leading to capital flowing to unproductive sources; although predicting when a bubble will occur is difficult, discerning investment in AI-exposed companies may promote sustainable growth.
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- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Oracle in the U.S. District Court for Delaware on behalf of investors who purchased Oracle common stock between June 12, 2025, and December 16, 2025, alleging the company made materially false and misleading statements during this period.
- Allegation Details: The complaint claims that Oracle's AI infrastructure strategy led to massive increases in capital expenditures without corresponding near-term revenue growth, while the increased spending posed serious risks to the company's debt, credit rating, and free cash flow.
- Investor Rights: Affected investors must apply by April 6, 2026, to be appointed as lead plaintiff in the lawsuit to protect their legal rights, with Bragar Eagel & Squire offering free consultations and encouraging investors to reach out for more information.
- Law Firm Overview: Bragar Eagel & Squire is a nationally recognized law firm specializing in securities, derivative, and commercial litigation, with extensive experience in representing investors and a commitment to providing legal support.
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- AI Infrastructure Demand: GE Vernova's stock rose over 5% in after-hours trading due to surging demand for power to support data centers, highlighting a shift towards increased orders for its gas turbines and electrification equipment from hyperscalers.
- Oracle and OpenAI Relationship: Despite Oracle's $300 billion deal to build infrastructure for OpenAI, market skepticism persists regarding Oracle's exposure, especially given OpenAI's projected cash burn of up to $115 billion by 2030.
- GE Vernova's Growth Outlook: Management anticipates mid-teens revenue growth from 2025 to 2028, with earnings expected to more than double during this period, bolstered by investor confidence stemming from Amazon and Alphabet's spending commitments.
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Wall Street Software Stocks Sold Off Amid AI Fears
- Investor Sentiment Shift: Investors fled once-reliable software stocks this week due to fears that generative AI could permanently erode demand for traditional digital services, indicating a significant shift in market confidence towards tech stocks.
- Dow Jones Record High: Despite the sharp sell-off in tech, the Dow Jones Industrial Average reached a new milestone of 50,000 points on Friday, showcasing its limited tech exposure as a key advantage, outperforming the Nasdaq 100 for seven consecutive sessions, the longest stretch in nearly four years.
- Surge in Layoff Data: The latest Challenger, Gray & Christmas report revealed that job cuts in January soared to 108,435, a 205% increase from December, with AI-related layoffs accounting for 7,624, or 7%, marking the highest monthly share since tracking began in 2023, highlighting labor challenges in the tech sector.
- Market Structural Changes: Investors are questioning the once-unshakable dominance of software and tech, suggesting that if AI is the disruptor, then value stocks, cyclicals, and tangible businesses may emerge as beneficiaries, reflecting a reevaluation of future investment directions.
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