Microsoft sued by shareholders over expenses, cloud business, AI
Shareholders sued Microsoft for allegedly defrauding them by hiding slowing Azure growth and massive AI spending.Summary
Microsoft has been sued by shareholders who accuse the company of defrauding them and inflating its stock price by failing to disclose slowing growth in its Azure cloud business and the need to spend billions of dollars on artificial intelligence (AI) infrastructure. The proposed class action, led by a Michigan pension fund, was filed in Seattle federal court after Microsoft shares fell 10 percent on Jan. 29 in response to its quarterly earnings report. The lawsuit alleges that Microsoft attributed the slowing Azure growth and higher spending to capacity constraints as it diverted resources to AI-related research and development and its Copilot chatbot. The defendants include several Microsoft officials, including Chief Executive Satya Nadella and Chief Financial Officer Amy Hood. The proposed class period runs from May 1, 2025 to Jan. 28, 2026.
(Source：The Manila Times)