Oracle Corp. Beats Securities Fraud Claims Over Cloud Sales

Oracle Corp. and six of its executives won dismissal, for now, of a proposed securities fraud class action involving the company’s sales practices after the Northern District of California found the plaintiffs failed to allege the company or its officers made false or misleading statements.

The Oracle shareholders alleged the company concealed coercive sales practices it used to “generate artificial cloud growth.”

When the “coerced” cloud subscriptions expired, the shareholders alleged, Oracle’s cloud revenue growth rate fell, bringing the stock price down with it from $50 per share to $46 per share.

But the shareholders didn’t show that the alleged ...