Oracle faces shareholder lawsuit over accounting methods
A lawsuit has been filed against Oracle over claims it used improper accounting methods to inflate its cloud computing revenues
A CLASS-ACTION lawsuit has been filed against Oracle over claims it used improper accounting methods to inflate its cloud computing revenues.
Filed by investor Grover Klarfeld, the lawsuit alleges that Oracle put shareholders’ investments at risks and that the firm violated the Sarbanes-Oxley and Dodd-Frank acts.
Oracle said: “The allegations contained in this suit parrot the claims in a suit filed by a disgruntled former employee. The claims are utterly baseless and the suits are reckless and irresponsible.”
The lawsuit comes a week after a former Oracle senior finance manager launched a legal claim against the firm which alleges she was sacked after voicing concerns about its approach to accounting for revenues in its cloud computing division.
Svetlana Blackburn lodged a whistleblower and wrongful termination lawsuit against Oracle in a US District Court in San Francisco, eight months after being fired.
Blackburn alleges that Oracle terminated her contract because she “resisted, refused to engage in and threatened to blow the whistle on accounting practices she reasonably believed to be unlawful”.
In a statement Oracle said: ‘We are confident that all our cloud accounting is proper and correct. This former employee worked at Oracle for less than a year and did not work in the accounting group. She was terminated for poor performance and we intend to sue her for malicious prosecution.’
Oracle has been contacted.
