Microsoft Corporation (NasdaqGS: MSFT).

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Microsoft Corporation (“Microsoft” or the “Company”) (NasdaqGS: MSFT).

In recent years, Microsoft’s cloud computing platform, known as Azure, has been its main growth driver providing customers with computing, networking, storage, mobile and web application services, artificial intelligence (“AI”), Internet of Things, cognitive services, and machine learning. In 2023, the Company introduced its own proprietary generative AI chatbot, Microsoft Copilot, subsequently highlighting the purported success of Copilot and its foray into AI development, claiming that Copilot offered best-in-class capabilities and enjoyed widespread and growing user adoption.

However, on January 28, 2026, the Company disclosed disappointing results for its fiscal second quarter ended December 31, 2025, including slower than expected growth of Azure. According to the Company, this was due to computational capacity constraints, as the Company had diverted central processing unit (“CPU”) and graphics processing unit (“GPU”) capacity to Copilot applications and AI-related research and development, while drastically increasing capital expenditures attributed to AI-related R&D, Copilot development, and capacity buildout costs. Further, growth of paid Copilot seats was far below analyst estimates and a fraction of the more than 450 million commercial Microsoft 365 users.

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the class period in violation of federal securities laws, which remains ongoing.

KSF’s investigation is focusing on whether Microsoft’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.

If you have information that would assist KSF in its investigation, or have been a long-term holder of Microsoft shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.