UPDATED 23:27 EDT / JUNE 06 2016

NEWS

Angry investor turns on Oracle over fake cloud revenue claims

An angry investor is suing Oracle and its top executives after the company’s share price plummeted in the wake of allegations that it doctored its cloud revenue figures.

The complaint, filed on behalf of Oracle shareholders by investor Grover Klarfeld, alleges that Oracle’s executives have put their investments in the company at risk through their actions. Klarfeld’s suit relates to an earlier lawsuit filed against Oracle by an ex-employee named Svetlana Blackburn, who claims she was fired by Oracle for refusing to manipulate the company’s cloud revenue figures. Following news of that lawsuit, Oracle saw its share price slump by four percent, wiping off around $6 billion of the company’s value.

Klarfeld’s complaint alleges that Oracle’s supremo Larry Ellison and co-CEO’s Safra Catz and Mark Hurd are to blame, saying: “ The defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies.”

Ex-employee Blackburn last week accused Oracle of violating the Sarbanes-Oxley Act by misrepresenting its cloud computing revenues in its financial reporting.

Klarfeld’s complaint, like Blackburn’s case, seeks to collect money from Oracle over its alleged wrongdoing, though in this case whatever payout there is would be distributed among the firm’s shareholders.

“Because of their positions of control and authority as senior officers, the Individual Defendants were able to, and did, control the contents of the various reports, press releases and public filings which Oracle disseminated in the marketplace during the Class Period concerning Oracle’s results of operations,” the complaint says of the execs.

Oracle has so far refused to comment on this particular case, but in a statement last week the company vehemently denied Blackburn’s allegations and announced it would be filing a counter-suit against her for damages caused by her claims.

Photo Credit: Oracle_Photos_Screenshots via Compfight cc

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU