RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Oracle Corporation (“Oracle” or the “Company”) (NYSE: ORCL) securities between May 10, 2017 and March 19, 2018, inclusive (the “Class Period”).
Oracle shareholders may, no later than October 9, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Oracle and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The Complaint alleges that, during the Class Period, The Company violated provisions of the Exchange Act by issuing false and misleading press releases, filings with the U.S. Securities and Exchange Commission (“SEC”), and statements during investor and analyst conference calls.
Oracle is one of the world’s largest software companies. Among other things, the Company offers both on-premises and cloud solutions to a variety of end users. Historically, Oracle’s revenues were driven by the sale of the Company’s on-premises software services, but those revenues have stagnated in recent years as customers shifted to cloud-based programs.
Throughout the Class Period, the Company misrepresented the true drivers of the Company’s cloud revenue growth. In particular, The Company falsely attributed the Company’s revenue growth in its cloud segment to a variety of factors and initiatives, including, among other things, Oracle’s “unprecedented level of automation and cost savings,” as well as the Company being “customer-focused” and “intimate partners with our customer.” In truth, Oracle drove sales of cloud products using threats and extortive tactics. The use of such tactics concealed the lack of real demand for Oracle’s cloud services, making the growth unsustainable and ultimately driving away customers. Among other things, the Company threatened current customers with “audits” of their use of the Company’s non-cloud software licenses unless the customers agreed to shift their business to Oracle cloud programs.
The truth was revealed on March 19, 2018, when the Company disclosed that cloud revenue growth had stagnated and forecasted significantly slower sales growth for its cloud business than its competitors. Following these disclosures, analysts and market commentators connected Oracle’s poor financial performance to its improper sales tactics. As a result of these disclosures, the price of the Company’s stock declined significantly.
If you are a member of the class, you may, no later than October 9, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.