Microsoft Faces Class Action Over Copilot AI Failures and Billions in Capex
MSFT•Shareholders who bought Microsoft stock from May 1, 2025, to January 28, 2026, are named plaintiffs in a proposed securities class action alleging undisclosed technical deficiencies in Copilot AI and unplanned billions in capital expenditures. The deadline to apply for lead plaintiff status is August 11, 2026.
1. Lawsuit Filing
Investors who purchased Microsoft shares between May 1, 2025, and January 28, 2026, are represented in a proposed securities class action filed on their behalf. The suit names Microsoft for alleged material misstatements related to its Copilot AI offerings.
2. Core Allegations
The complaint asserts that Microsoft concealed technical deficiencies in Copilot AI, overestimated its performance compared with competitors, and failed to disclose the need for billions of unplanned capital expenditures that diverted resources from Azure cloud services.
3. Potential Impact and Timeline
If certified, the class action could expose Microsoft to substantial financial liability and reputational damage. Investors must move before the August 11, 2026, deadline to be considered for lead plaintiff status.
