Oracle Stock Drops 3.43% After Second Cybersecurity Breach

Oracle's stock dropped 3.43% in pre-market trading on April 3, 2025, following the company's disclosure of a second cybersecurity breach within a month. The latest incident involved the theft of old customer login credentials from a legacy system that had not been used for eight years, posing minimal risk to current users. The FBI and CrowdStrike are investigating the breach, which is unrelated to a previous attack on medical clients. Despite Oracle's assurances that its cloud services were unaffected, security experts warn that the stolen data could be used for phishing attacks or account takeovers.

Oracle has faced a series of security challenges recently. In addition to the two breaches, the company is also dealing with a class-action lawsuit filed in Texas. The lawsuit alleges that Oracle failed to notify affected users within 60 days of discovering the data breaches, violating Texas data breach notification laws. The plaintiffs argue that Oracle's security failures led to the loss of personal identification information and health data, and that the company has not adequately communicated with its customers about the incidents.

The lawsuit highlights broader concerns about Oracle's security practices, including allegations of inadequate security measures, lack of employee training, and delayed detection of intrusions. These issues have raised questions about the company's ability to protect sensitive customer data and maintain the trust of its clients. As Oracle works to address these challenges, the company's stock performance may continue to be influenced by investor concerns about its cybersecurity posture.