NEW YORK, Aug. 10, 2018 /PRNewswire/ -- Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it filed a securities class action lawsuit on behalf of its client City of Sunrise Firefighters' Pension Fund against Oracle Corporation ("Oracle" or the "Company") (NYSE: ORCL), and certain of its executives (collectively, "Defendants"). The action, which is captioned City of Sunrise Firefighters' Pension Fund v. Oracle Corporation, et al., No. 5:18-cv-04844 (N.D. Cal.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§ 78j(b) and 78t(a), and Rule 10b‑5 promulgated thereunder, 17 C.F.R. § 240.10b-5, on behalf of investors who purchased Oracle's stock between May 10, 2017 and March 19, 2018, inclusive (the "Class Period").
The Complaint alleges that, during the Class Period, Defendants 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, Defendants misrepresented the true drivers of the Company's cloud revenue growth. In particular, Defendants 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 wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than October 9, 2018, which is the first business day on which the District Court for the Northern District of California is open that is 60 days after the publication date of August 10, 2018. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
City of Sunrise Firefighters' Pension Fund is represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at [email protected].
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.
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