Oracle stock declined as the tech giant has agreed to settle a lawsuit over claims that it tracks its users’ online and offline activity.
The cloud computing firm’s stock slid by -0.17% in the pre-market session to $161.75 apiece.
According to reports, the lawsuit claims that Oracle has captured, compiled, and sold its consumers’ data to third parties without their permission. However, the company asserts that its actions were legal, transparent about its operations, and did not acknowledge any misconduct.
Furthermore, the tech giant will pay a $115.00 million settlement. Sources noted that anyone living in the US affected from August 19, 2018, up to the present can be eligible to file a claim.
The fund will allocate up to $28.75 million for attorneys’ fees and additional expenses. Each valid claimant will receive an equal amount, with the final sum depending on the number of claims submitted.
Individuals who browsed the web, used geolocation services, or made electronic in-store purchases during the six years covered by the settlement might also be eligible.
Sources revealed that Oracle Advertising is accused of unlawfully gathering personal data through specific activities and selling it to third parties.
The company allegedly utilized discontinued products like ID Graph and Data Marketplace.
CTO of Oracle Aims to Rival Microsoft and Google in AI Space
According to reports, Oracle plans to rival Microsoft and Google in the artificial intelligence (AI) space after it launches its Autonomous Database and other AI-powered offerings.
The firm’s chief technology officer, Larry Ellison, has discussed its AI goals and highlighted its commitment to developing autonomous systems that can learn and adapt without human intervention.
Furthermore, the Autonomous Database, which automates tasks like tuning, security, and backups, is a crucial example of Oracle’s AI-focused strategy.
Oracle has significantly invested in its cloud infrastructure to support the tech workloads. Its Gen2 Cloud provides dedicated Exadata and high-performance computing, making it a strong competitor to Amazon Web Services and Azure.
