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Oracle Sued for Allegedly Misleading Investors on Cloud Sales Growth

A Florida-based firefighter pension fund sued Oracle for allegedly misleading investors about the health of its cloud computing business, according to this report from Bloomberg. The fund is seeking class-action status for the suit, the story said. This is the most significant cloud-related legal challenge Oracle has faced since June 2016, when a former Oracle senior finance manager sued the company for allegedly firing her after she raised concerns over its cloud software accounting. Oracle settled the case in February 2017.

Oracle’s aggressive software licensing enforcement practices are well-known in the tech industry, and as The Information reported in May, the company has used audits—and the prospect of audits—to get customers to purchase its cloud services. 

Oracle’s stance on the current lawsuit is that it hasn’t misled investors on cloud sales growth. “The suit has no merit and Oracle will vigorously defend against these claims,” an Oracle spokeswoman said in an emailed statement. 


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