Overview
- Investors filed a proposed class action in New York state court representing buyers of $18 billion in Oracle notes and bonds sold on Sept. 25, 2025.
- Led by the Ohio Carpenters’ Pension Plan, plaintiffs allege offering language that Oracle “may” borrow more was misleading because further borrowing had already been planned.
- The complaint says Oracle obtained roughly $38 billion in loans seven weeks later to fund data centers in Texas and Wisconsin supporting a five-year, $300 billion OpenAI agreement.
- Defendants include Oracle, Larry Ellison, former CEO Safra Catz, Chief Accounting Officer Maria Smith, and 16 underwriting banks, with unspecified damages sought under the Securities Act of 1933.
- Oracle shares fell about 4%–5% after the filing, and reports cite lingering uncertainty over a Michigan data center as Blue Owl exited, with Blackstone in talks and Bank of America said to be arranging $14 billion in debt.