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.