{"id":706275,"date":"2026-06-15T22:32:20","date_gmt":"2026-06-15T22:32:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/706275\/"},"modified":"2026-06-15T22:32:20","modified_gmt":"2026-06-15T22:32:20","slug":"microsoft-sued-by-shareholders-over-expenses-cloud-business-ai","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/706275\/","title":{"rendered":"Microsoft sued by shareholders over expenses, cloud business, AI"},"content":{"rendered":"\n<p class=\"yf-1fy9kyt\">By Jonathan Stempel<\/p>\n<p class=\"yf-1fy9kyt\">June 15 (Reuters) &#8211; <a href=\"https:\/\/www.yahoo.com\/organizations\/microsoft\/\" data-ylk=\"slk:Microsoft;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Microsoft&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Microsoft<\/a> has been sued by shareholders who accused the company of defrauding them and inflating its stock price \u200cby failing to disclose slowing growth in its Azure cloud business \u200cand the need to spend billions of dollars on AI infrastructure.<\/p>\n<p class=\"yf-1fy9kyt\">The proposed class action led by a \u200bMichigan pension fund was filed in Seattle federal court on Friday, after Microsoft shares fell 10% on January 29 in response to its quarterly earnings report a day earlier.<\/p>\n<p class=\"yf-1fy9kyt\">About $357 billion of market value was erased, and Microsoft&#8217;s stock suffered its biggest one-day \u200cdecline in nearly six years.<\/p>\n<p class=\"yf-1fy9kyt\">Microsoft \u2060said on Monday it believes the claims are &#8220;without merit,&#8221; adding, &#8220;Microsoft stands by the integrity of its public statements and will vigorously \u2060defend itself in court.\u201d<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 For its fiscal second quarter ending in December, Microsoft reported 39% revenue growth in its Azure and other cloud businesses, meeting analyst forecasts but \u200bdown from \u200b40% in the prior quarter, and projected \u200b37% to 38% growth in \u200cthe first three months of 2026.<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 Microsoft also reported $37.5 billion of capital spending in its second quarter, up nearly 66% from a year earlier and above the $34.3 billion that analysts projected.<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 The lawsuit said Microsoft attributed the slowing Azure growth and higher spending to capacity constraints as it diverted resources to AI-related research and development \u200cand to its Copilot chatbot, whose rivals \u200binclude Google&#8217;s Gemini and <a href=\"https:\/\/www.yahoo.com\/organizations\/openai\/\" data-ylk=\"slk:OpenAI;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;OpenAI&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">OpenAI<\/a>&#8216;s ChatGPT.<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 Microsoft, based \u200bin Redmond, Washington, is a major \u200binvestor in OpenAI.<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 The lawsuit is led by the City \u200cof St. Clair Shores Police and \u200bFire Retirement System in \u200bMichigan.<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 Defendants include several Microsoft officials, including Chief Executive Satya Nadella and Chief Financial Officer Amy Hood.<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 The proposed class period runs from May \u200b1, 2025 to January \u200c28, 2026.<\/p>\n<p class=\"yf-1fy9kyt\">\u2022 It is common for shareholders to sue companies for alleged \u200bsecurities fraud after unexpected declines in stock prices.<\/p>\n<p class=\"yf-1fy9kyt\">(Reporting by Jonathan Stempel \u200bin New York; Editing by Bill Berkrot)<\/p>\n","protected":false},"excerpt":{"rendered":"By Jonathan Stempel June 15 (Reuters) &#8211; Microsoft has been sued by shareholders who accused the company of&hellip;\n","protected":false},"author":2,"featured_media":706276,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,304940,82845,18112,1281,109834,2214,1431,74],"class_list":["post-706275","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-azure-cloud","tag-billions-of-dollars","tag-class-action","tag-microsoft","tag-quarterly-earnings-report","tag-revenue-growth","tag-shareholders","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/706275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=706275"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/706275\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/706276"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=706275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=706275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=706275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}