Former Oracle Finance Manager Raises Lawsuit Over Accounting Practices

Oracle

Oracle has said it intends to vigorously defend the matter.

A former senior finance manager at Oracle Corp raised a lawsuit against the company on Wednesday after alleging that she was fired as a result of complaining about improper account practices at the groups cloud services division.

Shares of Oracle fell about 2.6 percent to $39.23 in after-hours trading.

The lawsuit which was filed in U.S. District Court in San Francisco said that former executive, Svetlana Blackburn, was accusing senior management at the business of pushing her to “fit square data into round holes” improving Oracle Cloud Services’ results.

In response a spokeswoman for Oracle, Deborah Hellinger said:

“We don’t agree with the allegations and intend to vigorously defend the matter.”

According to the former employee, management told her to add millions in accruals for expected future business “with no concrete or foreseeable billing to support the numbers,” while executives senior to herself would also add accruals themselves.

Oracle faces tough competition from cloud computing products, which are basically software in data centers and not like their legacy software products connected to users’ computers. Currently legacy products are a major contributor to Oracle’s earnings and it is attempting to diversify.

During the previous quarter Oracle’s on-premises software sales dropped slightly compared to the prior year however earned the business $6.35 billion in revenue, 70 percent of its total revenue. Compared cloud revenue generated $735 million, just 8 percent of revenue but growing by 40percent on the previous year.

The California headquartered company has faced significant pressure from smaller rivals who specialise in cloud products such as Salesforce.com Inc.

Oracle has heavily invested in its cloud division during the last few years with a mission to gain a significant portion of the cloud marketplace. Safra Catz, co-chief executive of Oracle has stated in March that its cloud division is in a “hyper-growth phase.”

Blackburn lost her job at the business on October 15, 2015, just a month after her alleged disagreement with her managements accounting practices and two months following a positive performance review.

She stated that the company viewed her as “more of a roadblock than a team player who would blindly generate financial reports using improper bases in order to justify the bottom lines that her superiors demanded to see.”

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for with MarketBeat.com's FREE daily email newsletter.

Leave A Response