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Two Oracle shareholders on Tuesday sued the database giant and its board of directors for allegedly misleading investors about the potential of its cloud business.
The civil complaint, filed in a San Jose district court in America, accuses Oracle executives of omitting material facts in public communications and making false statements in 2017 forecasting rosy cloud revenue.
Results - Cloud - Year - Complaint - Alleges
Strong financial results, particularly in cloud, that year, the complaint alleges, were driven by threatening existing customers with licensing audits, decreasing customer support for on-premises systems to drive customers toward cloud service, and threatening price increases on legacy database licenses if customers looked to other cloud vendors.
"[Oracle] had to rely on these coercive practices given that its cloud-based offering is a 'bare-bones minimum viable product,' not 'a comprehensive and fully integrated stack of applications' as [Oracle] represented," the complaint says, citing a Gartner assessment of Oracle's cloud stack.
Allegations - Lines - Lawsuits - A - E
Allegations along these lines have been made in other lawsuits, such as A&E Adventures' claim against Oracle last year. The entertainment biz said Oracle tried to pressure it to move from an on-premises point-of-sale system to its Simphony cloud service.
Tuesday's lawsuit echos a similar claim by the City of Sunrise Firefighters' Pension Fund, which sued Oracle last year claiming financial mismanagement.
Oracle showed an...
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