Oracle Settles FTC Charges That Java Software Left PCs Open to Hackers

20 Jan 2016 | Author: | No comments yet »

Drexel Hamilton Reiterates “Buy” Rating for Oracle Co. (ORCL).

SAN FRANCISCO – PC users will see more warnings about the dangers of keeping outdated software on their machines, under a legal settlement negotiated by tech giant Oracle and regulators at the Federal Trade Commission.Oracle, one of the nation’s largest tech companies, is settling federal charges that it misled consumers about the security of its software, which is installed on roughly 850 million computers around the world.Oracle Co. (NASDAQ:ORCL)‘s stock had its “outperform” rating reaffirmed by analysts at Credit Suisse in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports. The FTC says Oracle Corp. deceived consumers for several years by promising that updating their Java software would keep them safe from malware and hacking attacks.

By abandoning these legacy builds, Oracle essentially left backdoors open on the computers of its customers — backdoors well-known to potential attackers due to their widespread publicity among security researchers. As part of the settlement, Oracle will be responsible for both notifying its users of the terms it agreed to and the risks posed by its uninstalled software, as well as for providing the tools necessary to perform complete removals.

Many consumers aren’t aware they use Java, which comes pre-installed on many PCs and helps with the operation of many web-based functions, including online calculators, games, chatrooms and even viewing 3D images. Action like this highlights the need for industry watchdogs, as insecure legacy software is a prime example of what economists call externalities: negative consequence of economic behavior that the free market provides no incentive to correct or account for. The software, known as Java SE, helps power many of the features consumers expect to see when they browse the Web, from browser-based games to online chatrooms. Oracle was aware since 2010 that older versions of Java had security flaws that left their users vulnerable to malicious attacks, according to the FTC.

Following the completion of the sale, the executive vice president now directly owns 20,000 shares of the company’s stock, valued at approximately $720,000. In a statement announcing the settlement, the FTC said Oracle’s internal documents show that it knew that its earlier procedures left some PCs vulnerable to hacking, despite its assurances to PC users. Three equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating, nineteen have given a buy rating and one has assigned a strong buy rating to the company. Finally, Jefferies Group restated a “buy” rating and set a $50.00 price objective (up previously from $46.00) on shares of Oracle in a report on Tuesday, December 15th. The Company’s offerings include Oracle database and middleware software, application software, cloud infrastructure, hardware systems including computer server, storage and networking products, and related services.

It operates through various segments, including new software licenses and cloud software subscriptions, which include software licenses and Oracle Cloud offerings; cloud infrastructure-as-a-service, which provides deployment and management offerings; software license updates and product support, which includes support, enhancements and upgrades for Oracle software products; hardware systems products, which includes servers, storage, networking, virtualization software, operating systems and management software; hardware systems support, which provides software updates for software components, and services business, which offers consulting services This story was originally published by WKRB News (http://www.wkrb13.com) and is the sole property of WKRB News. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at http://www.wkrb13.com/markets/968371/drexel-hamilton-reiterates-buy-rating-for-oracle-co-orcl/ Receive News & Ratings for Oracle Co.

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