By Reuters
Publication Date: 2026-01-14 18:36:00
NEW YORK, Jan 14 (Reuters) – Oracle (ORCL.N) was sued Wednesday by bondholders who say they suffered losses because the company chaired by billionaire Larry Ellison failed to disclose that it needed to sell significant additional debt to expand its artificial intelligence infrastructure.
The proposed class action lawsuit was filed in a New York state court in Manhattan on behalf of investors who bought $18 billion Debentures and bonds that Oracle issued on September 25, two weeks after Oracle announced a five-year, $300 billion contract Deploy OpenAI with computing power.
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Those investors said they were blindsided when Oracle returned to capital markets seven weeks later seeking $38 billion in loans to finance two data centers it was supporting the OpenAI agreement.
“The bond market’s reaction to Oracle’s additional debt was swift and forceful,” bondholders said, as their own debt fell in value and traded at comparable yields and spreads…
