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Investors are suing Oracle, claiming executives spent $1.87 billion on the AI ​​hype

Investors are suing Oracle, claiming executives spent .87 billion on the AI ​​hype

By Tez Romero
Publication Date: 2026-02-05 18:09:00

The lawsuit points to a warning sign that advisors know well: insider selling before the crash.

Investors claim Oracle misled them about AI infrastructure returns while top executives sold shares at inflated prices.

A securities class action lawsuit filed this week in federal court in Delaware accuses the tech giant and six of its executives of making false and misleading statements about the company’s investments in artificial intelligence, even though some of those executives sold significant amounts of their personal shares.

The lawsuit, filed on behalf of shareholders who purchased Oracle shares between June 12, 2025 and December 16, 2025, focuses on allegations that the company overstated how quickly its massive investments in AI infrastructure would be reflected in…

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