Markets

Why is Oracle (ORCL) Stock Falling Today?

An image of a smartphone and a pen
Credit: Shutterstock photo

On Thursday, shares of computer software developer Oracle Corp. ORCL are falling, down over 4% in morning trading after news broke that a former senior finance manager is suing the company for allegedly firing her for pointing out inappropriate accounting practices in its cloud services business.

According to Reuters , in a complaint filed in the U.S. District Court in San Francisco, Svetlana Blackburn, the former employee, is claiming that Oracle's upper management pressured her to "fit square data into round holes" in order to make Oracle Could Services results appear better than they actually were.

Blackburn also alleges that she was instructed by upper management to add millions of dollars of accruals for expected business "with no concrete or foreseeable billing to support the numbers," and said executives above her added accruals on their own. Blackburn seeks punitive damages, double back pay, and other remedies.

"We don't agree with the allegations and intend to vigorously defend the matter," Oracle spokeswoman Deborah Hellinger said to Reuters.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ORACLE CORP (ORCL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ORCL

Other Topics

Stocks