A securities fraud class action lawsuit has been filed against Microsoft Corporation and certain senior executives, alleging misrepresentations about its AI chatbot Copilot and Azure cloud computing platform. The lawsuit follows a 10% stock drop on January 28, 2026, after Microsoft announced disappointing 2Q 2026 financial results and that Azure growth had slowed suddenly. Microsoft also allegedly revealed for the first time that the number of Microsoft 365 Copilot premium customers totaled only 15 million, materially below analyst estimates. The complaint asserts that during the relevant period, Microsoft touted Copilot's best-in-class capabilities and widespread user adoption, which drove surging Azure-related revenue, but in truth, Copilot suffered from severe functionality issues that caused user adoption to decline and put Azure revenue at risk. The stock declined $48.13 per share, from $481.63 per share on January 28, 2026, to $433.50 per share on January 29, 2026. The class action is pending in the U.S. District Court for the Western District of Washington, and investors have until August 11, 2026 to ask the Court to be appointed to lead the case.