A class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) in the United States District Court for the Western District of Washington, announced Bragar Eagel & Squire, P.C. on June 23, 2026. The lawsuit is on behalf of all persons and entities who purchased or otherwise acquired Microsoft common stock between May 1, 2025 and January 28, 2026, both dates inclusive. Investors have until August 11, 2026 to apply to the Court to be appointed as lead plaintiff. According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services; and Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and its Copilot offerings had lost market share to rival products. The lawsuit claims that when the true details entered the market, investors suffered damages.