Overview
- Bondholders filed a proposed class action in New York state court on behalf of buyers of Oracle’s $18 billion September 25 debt offering.
- The complaint alleges offering documents said Oracle "may" need more financing even though plans for substantial additional borrowing were already in place.
- Plaintiffs say Oracle returned seven weeks later for about $38 billion in loans to fund data centers in Texas and Wisconsin supporting its OpenAI agreement.
- The suit names Oracle, Larry Ellison, former CEO Safra Catz, Chief Accounting Officer Maria Smith, and 16 underwriting banks, seeking damages under the Securities Act of 1933.
- Oracle shares fell roughly 4–5% and bond pricing came under pressure; Oracle did not immediately comment, while separate reports flagged Blue Owl’s exit from a Michigan project and talks with Blackstone as Bank of America leads a $14 billion debt package.