Law firms, including Bronstein, Gewirtz & Grossman, LLC, announced a securities fraud class action lawsuit against Microsoft. The lawsuit alleges Microsoft misled investors regarding the performance and user adoption of its AI chatbot, Copilot. It also cites concerns about the growth of its Azure cloud platform. These alleged misrepresentations occurred between May 2025 and January 2026.
The legal action stems from events on January 28-29, 2026. Microsoft's stock declined significantly on these dates. This followed the announcement of disappointing financial results and lower-than-expected Copilot customer numbers.
Separately, a Microsoft 365 price hike took effect on July 1st. An update to the Teams app is also upcoming.