Summary Judgment for Oracle in Securities Fraud Case Affirmed
In In re: Oracle Corp. Sec. Litig., No. 09-16502, a securities litigation against Oracle and three of its officers alleging that Oracle missed its earnings per share target due to an elaborate scheme to defraud the public about the quality of Oracle products and the revenue gained therefrom, the court affirmed summary judgment for defendants where plaintiffs failed to develop evidence sufficient to permit a reasonable jury to conclude that their losses were caused by the market's reaction to defendants' alleged fraud.
As the court wrote: "Oracle Corporation is the second-largest producer of software in the world. In the third quarter of its 2001 fiscal year, Oracle missed its forecasted earnings per share by two cents. Its stock price dropped. A legion of analysts blamed the miss on a late-quarter reaction by several key customers to the unfolding U.S. economic downturn that would become commonly known as the burst of the dot-com bubble."