Microsoft (MSFT) faces a proposed class action lawsuit filed by shareholders alleging the company failed to disclose slowing Azure cloud growth and rising AI infrastructure costs, Reuters reported Monday.
Microsoft shares fell 10% on Jan. 29 following the company's fiscal Q2 report that showed Azure revenue growth slowed to 39% from 40% in the prior quarter, while capital expenditures rose nearly 66% year over year to $37.5 billion in the quarter, the report said. The stock's decline erased roughly $357 billion of market value, Reuters said.
The complaint, filed Friday in Seattle federal court, is led by the City of St. Clair Shores Police and Fire Retirement System in Michigan, while defendants include Chief Executive Satya Nadella and Chief Financial Officer Amy Hood, the report said.
Microsoft did not immediately respond to a request for comment from.
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