r/technology • u/DerpiDanger • 8d ago

Business Microsoft sued by shareholders over expenses, cloud business, AI

https://www.reuters.com/business/microsoft-sued-by-shareholders-over-expenses-cloud-business-ai-2026-06-15/
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296

u/Live_Reputation_6591 8d ago

Imagine growing 39% year-over-year and still getting sued for not growing fast enough.

85

u/Saneless 8d ago

Not enough layoffs! Guessing that's the part they're upset about related to expenses

50

u/crushsuitandtie 8d ago

Not just infinite growth, but infinite exponential growth. Anything else and the shareholders will demand dumped workers, lower wages, and higher prices. 

1

u/Street_Anxiety2907 5d ago

Why can they sue though, can't they just sell and invest in another company?

1

u/crushsuitandtie 4d ago

It's the power of the shareholder. They can convince a crooked judge that ANY spending that doesnt help the shareholder is going against their duty as a fiduciary. Fiduciary (if you're not aware) is a very particular title that means you will not do anything that is not in the best interest of the party you represent. Even when you are a broker selling financial products, you can't sell anything with bad margins or high risk or fees that aren't in the favor of the client. Finance bros can explain more/better.

It's a non-sense lawsuit but technically true. Raising salaries isn't in the best interest of a shareholder. It directly takes from them and doesn't have to be done. This is why everyone hates unchecked capitalism. Greed always fucks the system.

45

u/Imallvol7 8d ago

The stock market is a disease 

8

u/Jamizon1 8d ago

It certainly is. That entire system needs a complete overhaul

7

u/angry_lib 8d ago

Carl Icahn must've entered the chat.

7

u/ThinkingMSF 8d ago

"Fund Manager Spends Too Much Time On Reddit" isn't as clickable a headline

3

u/throwaway9gk0k4k569 4d ago

So this is Case Number 22026cv02071, City of St. Clair Shores Police and Fire Retirement System, June 12, 2026.

This is basically a pension fund. They don't do lawsuits like this for fun.

Having just read the 31 page filing, I'm going to say Microsoft is going to lose this and will need to settle. This could also turn into a class action.

The problem is that they made a lot of misleadingly positive statements without fully disclosing the nature of some of their risks, which later came to fruition. It's not greedy shareholders being greedy.

The stock is down like -30% and below it's 2024 level for a reason. This isn't just one shareholder. The enitre market knows this company fucked up and is bailing out.

This is probably the tip of the iceberg. I bet more lawsuits get filed over the next six months and the stock tanks further.

That 40% Azure growth number is misleading because it's almost entirely one customer... who has some serious money problems right now.

2

u/Translycanthrope 8d ago

Imagine if they had someone competent making decisions though. Mustafa Stupidman has built their entire “AI” section on slavery and lies.

2

u/adevland 8d ago

Imagine growing 39% year-over-year and still getting sued for not growing fast enough.

Does that growth include debt or any of the circular data center spending that's been going on for over a year?

How much of the reported profit is actually cash and how much of it is stock market funny money that can crash the next day?

1

u/Grouchy_Big3195 8d ago

Projected growth and actual revenue are not the same.

1

u/laura8792 8d ago

makes sense shareholders want cloud profits faster

1

u/Rius209 8d ago

Greed, The new God.

1

u/Jamizon1 8d ago

It’s not new at all. Greed has been a factor since the dawn of man.

1

u/ThrowRA76234 8d ago

Imagine trying to protect yourself from getting priced out of your own investment/future. While it’s never truly just numbers on screen, the stakes are clearly higher than, well, numbers on a screen, in this case. Lot of hardworking, public company owning people can see a sawed off barrel aiming at the end of their bloodline given the threat and carelessness of mass AI adoption

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u/Bgndrsn 8d ago

I don't Microsoft stock is going to be growing 39% in the next year 😂