# Microsoft Stock Price Declined Following Legal Dispute

Microsoft shareholders have filed a class action lawsuit against the company. The lawsuit alleges that the company failed to provide investors with complete information regarding the slowdown in Azure growth and substantial expenses related to artificial intelligence.

The case was initiated in the Seattle federal court by Michigan's pension fund. The lawsuit was preceded by a 10% decline in Microsoft's stock price, which resulted in the company's market value decreasing by approximately $357 billion. This was Microsoft's largest single-day stock price decline in the past six years.

According to financial data, Azure's growth rate decreased from 40% to 39% compared to the previous quarter. Meanwhile, the company's capital expenditures reached $37.5 billion, which is 66% higher compared to the previous year.

The plaintiffs believe that Microsoft allocated a significant portion of resources to the development of artificial intelligence and Copilot, which increased expenses and created pressure on Azure's capabilities. Named as defendants are company executives, including Chief Executive Officer Satya Nadella and Chief Financial Officer Amy Hood.

Source: Investing.com