In Re Microsoft Corporation Stockholder Derivative Litigation

On 30 June 2026, Eric Anderson filed a shareholder derivative action in the US District Court for the Western District of Washington against CEO Satya Nadella, CFO Amy Hood, and nine directors. The Plaintiff alleges that the Defendants made false statements to shareholders, in SEC filings, and proxy statements about Microsoft's AI strategy and compliance with copyright laws whilst knowingly concealing copyright violations.

The Complaint alleges that Microsoft represented that it trained AI models "in a manner consistent with global copyright laws" and obtained data through "negotiated arrangements with publishers and copyright owners." However, the Plaintiff alleges Microsoft trained models on approximately 200,000 pirated books and, through its $13 billion partnership with OpenAI, supplied Azure infrastructure and shared profits from systems trained on pirated materials whilst knowing of such infringement. The Complaint also refers to concealment of undisclosed problems related to CoPilot adoption, design and performance and the impact on the costs associated with this.

The Plaintiff brings claims for breach of a fiduciary duty, violation of Section 14(a) of the Securities Exchange Act, and unjust enrichment.

This summary is provided for educational and research purposes only and does not constitute legal advice. Allegations described are those made in the filings. Please consult the underlying source documents.