homeimgo

Home

About Our Firm

Our Areas of Practice

Our Attorneys

Recently Filed Actions

Join a Class Action

Report Fraud

Significant Recoveries

Notices & Proof of Claims

Contact Us

KAPLAN FOX & KILSHEIMER LLP FILES
SECURITIES FRAUD CLASS ACTION
AGAINST ORACLE CORPORATION.

NEW YORK – March 14, 2001– Kaplan Fox & Kilsheimer LLP (www.KaplanFox.com) has filed a class action against Oracle and certain of the Company’s officers and directors in the United States District Court for the Northern District of California.  The suit is brought on behalf of all persons or entities who purchased securities of Oracle Corporation (“Oracle”) (NASDAQ: ORCL) between December 15, 2000 and March 1, 2001 inclusive (the “Class Period”).

The complaint charges Oracle and Lawrence J. Ellison, the founder, Chairman and Chief Executive Officer of Oracle with violations of the Securities Exchange Act of 1934. Oracle supplies software for enterprise information management. The complaint alleges that at the beginning of the Class Period, defendants represented that Oracle would have sequential EPS growth of 9%, or $0.12, and revenue of over $2.9 billion for its Q3 2001. Defendants assured investors that Oracle's new 11i Suite required no programming systems integration to implement the product and that using the product internally saved the Company $ 1 billion. However, defendant Ellison actually knew that the Suite was fraught with massive technical problems, including giant gaps in its CRM modules, and required expensive systems integration work to implement. Ellison also knew that Oracle's so-called billion dollar savings was not the result of the synergies created by Oracle's 11i product, but rather, his decision to terminate more than 2,000 employees, many of whom would "support" Oracle's new software. Throughout January and February 2001, defendants repeatedly stated that Oracle's Q3 2001 estimates were easily achievable, that Oracle's pipeline was "never stronger," its applications growth was "accelerating," its database and application sales were rapidly growing and that the slowing economy was showing no impact on Oracle's Q3 2001 performance. During this period defendant Ellison sold nearly $900 million worth of his own Oracle shares at prices as high as $32 per share, or 50% higher than the price to which Oracle shares dropped as Oracle's true prospects began to reach the market.

On March 1, 2001, Oracle revealed that, contrary to prior assurances by defendants of Oracle's continuing "strong" revenue and EPS growth, including defendants' assurances less than two weeks earlier that demand remained strong, Oracle would post a major revenue shortfall and EPS declines, sending Oracle's shares into a free fall. This disclosure shocked the market, causing Oracle's stock to decline to less than $17 per share before closing at $16.88 per share on March 2, 2001, on record volume of more than 221 million shares.

If you are a member of the Class, you may move the court no later than May 8, 2001, to serve as a lead plaintiff for the Class.   In order to serve as a lead plaintiff, you must meet certain legal requirements.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@KaplanFox.com or contact:

Frederic S. Fox, Esq.
Christine M. Fox, Esq.
Adam Walsh, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com

Back to the Main List

  Please Click Here to Join the Class Actions or Request Information

 

 | HOME | | ABOUT OUR FIRM | | OUR AREAS OF PRACTICE |

| OUR ATTORNEYS | | RECENTLY FILED ACTIONS | | CONTACT US |

For additional information about Kaplan Fox & Kilsheimer LLP

contact (mail@KaplanFox.com)

© Copyright 2001, Kaplan Fox & Kilsheimer LLP