Oracle Must Face Some Investor Allegations in Cloud Sales Suit

Oracle Corp. lost its bid to defeat all accusations it misled investors about certain cloud technology sales practices after a federal judge in California determined part of the case could go forward.

The software company’s investors properly alleged that it misrepresented its cloud segment revenue growth, the U.S. District Court for the Northern District of California said. Some of the challenged statements aren’t actionable, but others support a “narrow” fraud theory, allowing the case to proceed.

Oracle correctly identified some investor allegations added following the 2019 dismissal of an earlier complaint as “nothing more than puffery,” Judge Beth Labson ...