finishing | Su Mi
produced | CSDN (ID: CSDNnews)
Although Oracle is the absolute king in the database field, in the field of cloud computing , Gartner once listed it as a "niche player". Even so, facing the huge cake of cloud computing, Oracle still wants to get a piece of it, but its actions have caused trouble.
In 2018, Oracle was sued by some investment companies , who claimed that the database giant had exaggerated its cloud business revenue. The lawsuit targets not only Oracle, but also executives Safra Catz, Mark Hurd, Larry Ellison, Thomas Kurian, Ken Bond and Steve Miranda, alleging fraud.
According to foreign media reports, the company currently filing an class action lawsuit against Oracle is seeking to resolve this long-standing dispute. Lead plaintiff Union Asset Management Holding AG, a German investment firm, filed a motion asking a judge to resolve the four-year dispute for $17.5 million after months of negotiations with the tech giant.
Oracle is sued
Looking back on what happened, four years ago, the law firm Bernstein Litowitz Berger Grossmann LLP filed a lawsuit on behalf of the Sunrise City Firefighters Pension Fund in Florida, claiming that Oracle executives issued "false and misleading" statements. Content. The
lawsuit claims that Oracle executives misrepresented the "real drivers" of revenue growth at the IT giant's cloud computing unit, falsely attributing it to factors such as Oracle's "unprecedented levels of automation and cost savings." , as well as statements that the company is "customer-centric" and "a close partner to its customers."
Meanwhile, the lawsuit states that Oracle has been coercing customers into adopting its cloud services in order to inflate Oracle revenue and mask the market's disinterest. "In fact, Oracle Inc. used threats and extortion to drive sales of its cloud products," the lawsuit reads. "The use of such tactics concealed a lack of genuine demand for Oracle's cloud services, making growth unsustainable (and ultimately driving away customers)." The
lawsuit alleges that one way Oracle has boosted its cloud computing revenue is by threatening customers with audits of non-cloud software licenses for the company's in-house software unless they move their business to Oracle cloud computing services.
In March 2019, German investment company Union Asset Management Holding AG became the lead plaintiff in a lawsuit against Oracle and submitted an amended complaint. The main complaint alleges that Oracle used aggressive cloud sales tactics to supposedly inflate its stock price.
However, Deborah Hellinger, Oracle's director of communications at the time, said in an email: "This lawsuit has no merit and Oracle will vigorously defend these claims.
17.5 million to achieve settlement
And then, the tug of war It has been four years since the war began. Recently, foreign media said that the two parties wanted to reach a settlement. According to court documents, the reason for settlement proposed by the lead plaintiff was that continuing the litigation might be plagued by "substantial risks, costs and delays."
In the lawsuit, the lead plaintiff argued that Oracle's statements about its cloud revenue drivers during the relevant period were "misleading by omitting certain facts related to Oracle's sales practices."
However, Oracle argued that. , its revenue and guidance were accurately reported, and even if any alleged misselling occurred, they were not a significant driver of cloud sales. Oracle also said that in relation to the allegations of discounting of Oracle Cloud products, Such discounts are appropriate and cannot form the basis of an allegation of fraud. "
Oracle also said that the investors who filed the lawsuit were unable to establish causation of the losses. In the filing, it stated that most, if not all, of the stock price declines could not be "causally related" to the alleged misrepresentations.
Nonetheless, After mediation, it appears Oracle will settle for $17.5 million plus accrued interest
.
