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(Image credit: Getty Images / NurPhoto) Share Share by: Copy link Facebook X Whatsapp Reddit Flipboard Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Oracle is facing a class action lawsuit from a group of disgruntled bondholders who claim they lost money after the company misled them over how much money it needed to borrow to finance its AI infrastructure commitments. Specifically, they say the company's claim that it "may" need to borrow more money was false and misleading, because it was already planning to issue another set of bonds. According to Reuters , Oracle sold $18 billion of notes and bonds on September 25, 2025, to support its $300 billion deal with OpenAI . However, investors were surprised when the company released another set of bonds worth $38 billion almost two months later.
“The bond market’s reaction to Oracle’s additional debt was swift and bracing,” the suit reads. The market saw Oracle’s additional debt as an increased credit risk that the company is taking on. Because of this, the original series of bonds and notes have fallen in value and is now trading like debt from companies with lower ratings. The bondholders, led by the Ohio Carpenters’ Pension Plan, contend that the statements for the initial bonds said that the company was only considering another set of loans. However, they argue that Oracle already knew at this point that it was going to issue another, much larger, loan to fund its expansion. The plaintiffs said that Oracle and some of its chief executives, as well as the 16 banks that were underwriting the loan, were liable under the Securities Act of 1933.
Wall Street warns of rising AI debt risk as stocks slide on wobbly investor confidence
Oracle reportedly delays several new OpenAI data centers because of shortages
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/shareholders-sue-oracle-over-misleading-statements-related-to-usd300-billion-openai-data-center-build-out-disgruntled-plaintiffs-say-the-company-lied-about-how-much-money-it-needed-to-borrow#main
- https://www.tomshardware.com
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