Oracle (ORCL) Hit by Lawsuit in the U.S. for Violating Privacy

Zacks Equity Research

August 23, 2022 at 10:24 AM·3 min read

Oracle ORCL has been hit by a privacy class-action lawsuit in the United States by the Irish Council for Civil Liberties (ICCL), claiming that the company's worldwide surveillance machine has collected detailed reports on nearly 5 billion people for marketing purposes.

The cloud infrastructure provider, also registered as a data broker in California, allegedly gathers and sells personal information using tracking technologies without permission in violation of state law and federal wiretap law, according to a class action complaint filed in the U.S. District Court for the Northern District of California.

These reports contain information on people, including names, home addresses, emails, purchases online and in the real world, physical movements in the real world, income, interests and political views, and a detailed account of online activity.

The complaint against Oracle alleges violations of the Federal Electronic Communications Privacy Act, the Constitution of the State of California, the California Invasion of Privacy Act, competition law and the common law.

Oracle Corporation Price and Consensus

Oracle Corporation price-consensus-chart | Oracle Corporation Quote

Legal Tangles and Lawsuit Expenses Raise Concerns

Oracle has been embroiled in various legal tangles. In 2016, Oracle faced defeat in two of its most high-profile lawsuits. In December 2017, the company renewed the legal fight over Android against Alphabet GOOGL. In the recent filing, Oracle challenged the idea of “fair use” and alleged that Google lied when it said Android didn’t compete directly with Oracle’s ability to license its products to customers.

Lawsuit expenses such as those incurred in the U.S. Department of Defense’s (DoD) Joint Enterprise Defense Infrastructure (JEDI) cloud contract do not bode well for Oracle’s business opportunities with DoD. In October last year, Oracle’s long-standing appeal against an unfair awarding of the $10-billion JEDI cloud deal (now abandoned) by the Pentagon was quashed by the U.S. Supreme Court, which ruled that the company could not have qualified for the JEDI deal.

Microsoft MSFT was first awarded the JEDI contract by the Pentagon in October 2019. Amazon AMZN has strived to prevent Microsoft from working on the contract ever since. Amazon was granted a preliminary injunction order issued by the Court of Federal Claims on Feb 13, 2020 that did not permit the immediate commencement of the contract by Microsoft.

DoD is now planning to float a multi-cloud/multi-vendor Indefinite Delivery-Indefinite Quantity (IDIQ) contract — Joint Warfighter Cloud Capability (JWCC). DoD is looking toward Microsoft as well as Amazon for bids for the new contract as it finds these two cloud service providers (CSPs) competent enough to cater to the organization’s requirements.

Nonetheless, on May 17, Oracle announced that Oracle Cloud Infrastructure (OCI) attained DOD Impact Level 5 (IL5) Provisional Authorization (PA) for additional services. With the DOD authorizations in place, Oracle is expected to deliver a highly secure, compliant and cost-effective cloud built for the U.S. government at a much lower price.

This Zacks Rank #2 (Buy) company has also been endeavoring to augment its government services portfolio, despite its late entry into the cloud domain. According to a ResearchAndMarkets report, the global government cloud market is expected to witness a CAGR of 16.3% between 2022 and 2027 and reach $71.2 billion. Higher expenditure on cloud infrastructure services offers alluring business prospects for CSPs.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

Oracle Corporation (ORCL) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

NBC News
Demonstrations continue at universities across the country during weekend commencement ceremonies
Demonstrations continued and new encampments were erected at universities across the country as commencement ceremonies took place Saturday following weeks of pro-Palestinian protests that have led to nearly 3,000 arrests, according to an NBC News tally.
AFP
'A joke': Trump fans defiant ahead of ex-fixer's court testimony
Empty fairground rides twisted and spun Saturday on the New Jersey shore as thousands of Donald Trump supporters filled a pristine beach for a rally ahead of potentially damaging testimony in his criminal trial next week.The seaside resort venue for the rally, Trump's first since mid-April, was a far cry from the dingy Manhattan courthouse that has hosted Trump four days a week since the start of his trial for covering up hush-money payments.
AFP
Switzerland's Nemo wins Eurovision Song Contest
Switzerland's Nemo won the Eurovision Song Contest on Saturday, becoming the first artist identifying as non-binary to claim victory, in a competition marked by controversy over Israel's participation during the war in Gaza.Twenty-five nations competed Saturday but much of the focus has centred on the controversy of Israel being able to take part.
NBC News
Auroras illuminate night skies around the world, expected to possibly continue through Monday
Night skies were lit up by the northern lights Friday in locations the auroras don't normally shine as a severe solar storm supercharged the phenomenon.
Reuters
Canadian police arrest fourth man for murder of Sikh leader Nijjar
A fourth person has been arrested and charged with the murder of Sikh separatist leader Hardeep Singh Nijjar last year, Canadian police said on Saturday, in a case that strained diplomatic relations with India. Canadian police earlier this month arrested and charged three Indian men in the city of Edmonton in Alberta and said they were probing whether the men had ties to the Indian government. The Integrated Homicide Investigation Team (IHIT) announced Saturday that Amandeep Singh, 22, has been charged with first-degree murder and conspiracy to commit murder in Nijjar's killing.
CNN
50,000 protest Georgia’s foreign agent bill as US sounds alarm over ‘Kremlin-style’ law
Tens of thousands march against a bill that has touched off a rolling political crisis in Georgia, as the US says country faces choice between a Russian-style law and the people’s Euro-Atlantic aspirations.
USA TODAY
Palestinian girl needs life-saving treatment but can't leave Gaza because of border closing
Three-year-old girl with rare disease needs evacuation from Gaza for medical care. Israel's closing of Rafah border crossing makes that impossible.
Politico
Trump may face a $100M-plus tax bill if he loses IRS audit fight over Chicago tower, according to report
According to the report by The New York Times and ProPublica, a government audit indicates the former double-dipped on tax losses tied to a Chicago skyscraper.
Associated Press
Controversy follows Gov. Kristi Noem as she is banned by two more South Dakota tribes
The latest developments in the ongoing tribal dispute come on the heels of the backlash Noem faced for writing about killing a hunting dog that misbehaved in her latest book. It is not clear how these controversies will affect her chances to become Donald Trump's running mate because it is hard to predict what the former president will do. The Yankton Sioux Tribe voted Friday to ban Noem from their land in southeastern South Dakota just a few days after the Sisseton-Wahpeton Ovate tribe took the same action.
USA TODAY
Taking photos of the northern lights with your smartphone? Tips to get the best picture
Are you taking a photo of the northern lights? Here is what you need to know in order to capture the perfect photo on your smartphone.
CNN
Biden calls Trump ‘unhinged’ and says ‘something snapped’ in former president after he lost 2020 election
President Joe Biden on Saturday called Donald Trump “clearly unhinged” and claimed that “something snapped” in the former president after he lost the 2020 election.
CNN
Missed the dazzling northern lights show? You might get another chance Saturday night
A second chance to view the magnificent auroras produced by a series of solar flares and coronal mass ejections from the sun will arrive Saturday evening in case you missed the previous night’s spectacle.
Associated Press
Small pro-Palestinian protests held Saturday as college commencements are held
Small pro-Palestinian protests popped up sporadically Saturday as colleges and universities from North Carolina to California held commencement ceremonies, including dozens of graduating students at Virginia Commonwealth University who walked out on an address by Gov. Glenn Youngkin. While some of the estimated 100 students and family members who left during the Republican governor's speech showed support for Palestinians, others held signs signaling opposition to Youngkin's policies on education, according to WRIC-TV.
AFP
'Cohen's a joke': Trump faithful defiant ahead of ex-fixer's testimony
Empty fairground rides twisted and spun Saturday on the New Jersey shore as thousands of Donald Trump supporters filled a pristine beach for a rally ahead of potentially damaging testimony in his criminal trial next week.He has no credibility at all," said Lisa Lombardo, 61, a director of physician relations from the nearby New Jersey town of Medford to the Wildwood resort for the rally Saturday.
Associated Press
Experts say gun alone doesn't justify deadly force in fatal shooting of Florida airman
On the afternoon of May 3, Roger Fortson opened the door of his Florida apartment with a gun in his hand and was immediately shot six times by a sheriff’s deputy responding to a complaint about an argument. Fortson's supporters point to the deputy's rapid decision to open fire and his mere presence at the apartment — where the Air Force senior airman was apparently alone and FaceTiming with his girlfriend — as proof that it was a blatantly unjustified killing and the latest tragedy involving a Black American being shot at home by law enforcement. Authorities, meanwhile, have seized on Fortson holding a gun when he answered the door to cast the shooting as a clear-cut case of self-defense for a deputy confronted with a split-second, life-or-death decision.
CNN
In 1968, protests forced Columbia University to change graduation. Here’s what happened next.
Columbia University finds itself at a similar crossroads as the Class of 1968 after canceling the upcoming university-wide graduation ceremony in response to student protests over Israel’s War in Gaza.
CNN
Anti-government protests demand release of Gaza hostages ahead of Israel’s Memorial Day
Protesters took to the streets of several cities across Israel on Saturday, demanding the release of all hostages held in Gaza ahead of Israel’s Memorial Day.
AFP
Thousands of pro-Palestinian protesters rally in Madrid
Thousands of pro-Palestinian demonstrators marched through Madrid on Saturday to demand a ceasefire in war-torn Gaza and a severing of ties between Spain and Israel.Spanish students have set up peaceful sit-ins and camps at universities in Madrid, Barcelona and Valencia in recent days, mirroring similar pro-Palestinian campus movements across the United States and Europe.
AFP
In Tel Aviv, Eurovision fans hope world shows Israel some love
Eurovision fans gathered in Tel Aviv Saturday to watch the show taking place in Sweden on big screens said they were hoping voters would finally show Israel some love.The mood was electric at the packed Layla bar in Tel Aviv as the show got underway, with the crowd going wild when Israel's contestant Eden Golan appeared on screen, jumping up and down and waving Israeli flags.
AFP
More than 300 dead in Afghanistan flash floods: WFP
More than 300 people were killed in flash floods that ripped through multiple Afghan provinces, the UN's World Food Programme said Saturday, as authorities declared a state of emergency and rushed to rescue the injured. - State of emergency - Emergency personnel were rushing to rescue injured and stranded Afghans.

Oracle Corporation Price and Consensus

Legal Tangles and Lawsuit Expenses Raise Concerns

Latest Stories