Microsoft Stock Price Plummets Amid Allegations of Misled Investors

The Portnoy Law Firm has announced a class action lawsuit on behalf of investors in Microsoft Corporation who bought securities between May 1, 2025 and January 28, 2026. The lawsuit alleges that Microsoft misled investors about the success of its Copilot generative AI chatbot, which was touted as a key growth driver for the company's Azure cloud computing platform.

Microsoft investors have until August 11, 2026 to file a lead plaintiff motion and join the case. According to the complaint, Microsoft consistently claimed that Copilot had best-in-class capabilities, driving widespread user adoption and surging Azure-related revenue. However, in truth, Copilot suffered from severe functionality issues that caused user adoption to decline and put Azure revenue at risk.

On January 28, 2026, Microsoft announced disappointing 2Q 2026 financial results, revealing for the first time that the number of Microsoft 365 Copilot premium customers totaled only 15 million, materially below analyst estimates. This news caused the price of Microsoft common stock to decline $48.13 per share, or 10%, from $481.63 per share on January 28, 2026, to $433.50 per share on January 29, 2026.