{"id":238207,"date":"2026-01-14T21:22:12","date_gmt":"2026-01-14T21:22:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/238207\/"},"modified":"2026-01-14T21:22:12","modified_gmt":"2026-01-14T21:22:12","slug":"oracle-sued-by-bondholders-over-losses-tied-to-ai-buildout-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/238207\/","title":{"rendered":"Oracle sued by bondholders over losses tied to AI buildout"},"content":{"rendered":"\n<p class=\"yf-vbsvxt\">NEW YORK, Jan 14 (Reuters) &#8211; Oracle was sued on Wednesday by bondholders who say they suffered \u200blosses because the company chaired by billionaire Larry \u200cEllison failed to disclose it needed to sell significant additional debt \u200cto build out its <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial intelligence;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> infrastructure.<\/p>\n<p class=\"yf-vbsvxt\">The proposed class action was filed in a New York state court in Manhattan on behalf of investors who bought $18 billion of \u2060notes and bonds that \u200cOracle issued on Sept. 25, two weeks after Oracle announced a $300 billion, five-year contract to \u200dsupply <a href=\"https:\/\/www.yahoo.com\/organizations\/openai\/\" data-ylk=\"slk:OpenAI;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">OpenAI<\/a> with computing power.<\/p>\n<p class=\"yf-vbsvxt\">These investors said they were blindsided when Oracle returned to the capital markets seven weeks later \u200bto obtain $38 billion of loans to fund two data \u200ccenters to support the OpenAI agreement.<\/p>\n<p class=\"yf-vbsvxt\">&#8220;The bond market&#8217;s reaction to Oracle&#8217;s additional debt was swift and bracing,&#8221; as prices fell and yields rose on Oracle&#8217;s debt because investors perceived higher credit risk, the bondholders said.<\/p>\n<p class=\"yf-vbsvxt\">According to the \u2060complaint, Oracle, Ellison, former Chief Executive \u200bSafra Catz, Chief Accounting Officer \u200bMaria Smith, and the company&#8217;s underwriters are strictly liable under federal securities laws for false \u200dand misleading statements \u2060in offering documents for the $18 billion debt sale. The bondholders are seeking unspecified damages.<\/p>\n<p class=\"yf-vbsvxt\">Oracle did not immediately respond \u2060to a request for comment.<\/p>\n<p class=\"yf-vbsvxt\">(Reporting by Jonathan Stempel in New York; \u200cAdditional reporting by Stephen Nellis in San \u200cFrancisco; Editing by Nick Zieminski)<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK, Jan 14 (Reuters) &#8211; Oracle was sued on Wednesday by bondholders who say they suffered \u200blosses&hellip;\n","protected":false},"author":2,"featured_media":238208,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,128621,85,46,7041,125],"class_list":{"0":"post-238207","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-bondholders","12":"tag-il","13":"tag-israel","14":"tag-larry-ellison","15":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/238207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=238207"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/238207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/238208"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=238207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=238207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=238207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}