Oracle, Ellison to Face Securities Class Action Over Cloud Sales

Oracle Corp. and its senior leaders, including billionaire chairman Larry Ellison, must face class action litigation over claims they misled investors about the financial health of the tech giant’s cloud computing segment, a federal judge in San Jose, Calif., ruled.

Judge Beth Labson Freeman certified the securities fraud case as a class action, finding that the damages model proposed by a group of investors could likely determine in one stroke whether and to what extent each shareholder was harmed by the alleged scheme to inflate Oracle’s stock price.

Freeman, writing for the US District Court for the Northern District of ...