{"id":238700,"date":"2026-01-15T03:36:15","date_gmt":"2026-01-15T03:36:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/238700\/"},"modified":"2026-01-15T03:36:15","modified_gmt":"2026-01-15T03:36:15","slug":"lawsuit-alleges-oracle-made-misleading-statements","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/238700\/","title":{"rendered":"Lawsuit Alleges Oracle Made Misleading Statements"},"content":{"rendered":"<p><a href=\"https:\/\/www.oracle.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Oracle<\/a>\u00a0was\u00a0reportedly sued\u00a0Wednesday (Jan. 14) by bondholders who\u00a0allege\u00a0that the company made false and misleading statements in the offering documents for\u00a0an\u00a0$18 billion\u00a0debt sale.<\/p>\n<p>The proposed class action lawsuit includes investors who bought $18 billion of notes and bonds issued by Oracle on Sept. 25, after the company announced two weeks earlier that it had gained a $300 billion, five-year contract to supply computing power to OpenAI, Reuters <a href=\"https:\/\/www.reuters.com\/sustainability\/boards-policy-regulation\/oracle-sued-by-bondholders-over-losses-tied-ai-buildout-2026-01-14\/\" target=\"_blank\" rel=\"noopener nofollow\">reported<\/a>\u00a0Wednesday.<\/p>\n<p>The lawsuit alleges that the investors then suffered losses when Oracle returned to the capital markets seven weeks later, seeking\u00a0$38 billion\u00a0of loans to fund data centers to support that agreement, and prices fell and yields rose as investors perceived higher credit risk, according to the report.<\/p>\n<p>The suit seeks unspecified damages,\u00a0per\u00a0the report.<\/p>\n<p>Reached by PYMNTS, Oracle declined to comment on the report.<\/p>\n<p>It was reported in September that Oracle\u2019s $300 billion agreement to provide\u00a0<a href=\"https:\/\/www.pymnts.com\/artificial-intelligence-2\/2025\/oracle-and-openai-strike-300-billion-cloud-agreement-for-ai-infrastructure\/\" target=\"_blank\" rel=\"noopener nofollow\">cloud services<\/a>\u00a0to OpenAI was one of the largest technology contracts on record.<\/p>\n<p style=\"text-align:center\">Advertisement: Scroll to Continue<\/p>\n<p>The five-year deal secures vast amounts of computing power and requires 4.5 billion gigawatts of electricity,\u00a0roughly equal\u00a0to what 4 million U.S. homes consume, the Wall Street Journal\u00a0<a href=\"https:\/\/www.wsj.com\/business\/openai-oracle-sign-300-billion-computing-deal-among-biggest-in-history-ff27c8fe?mod=e2twd\" target=\"_blank\" rel=\"noopener nofollow\">reported<\/a> at the time.<\/p>\n<p>PYMNTS reported that for Oracle, the deal strengthened its standing in a competitive cloud market and, by tying the company to one of the most visible providers of artificial intelligence, positioned it as a central player in a fast-growing segment.<\/p>\n<p>Later in September, PYMNTS reported that OpenAI and Oracle\u2019s contract was the most visible example of how the AI boom\u2019s second act is being financed not just by venture dollars but also by borrowing, as companies race to build the <a href=\"https:\/\/www.pymnts.com\/artificial-intelligence-2\/2025\/the-ai-booms-second-act-debt-fueled-growth\/\" target=\"_blank\" rel=\"noopener nofollow\">data centers<\/a>\u00a0and buy the chips needed to train and run large language models.<\/p>\n<p>Oracle said in a December\u00a0<a href=\"https:\/\/www.oracle.com\/news\/announcement\/blog\/oracle-is-set-to-power-on-new-data-center-in-michigan-2025-1018\/\" target=\"_blank\" rel=\"noopener nofollow\">blog post<\/a>\u00a0that it was building a new data center in Michigan that will be equipped with the latest technology for its client, OpenAI.<\/p>\n<p>The company said that this is one of 64 data centers that Oracle is building, and that these will join the 147 such facilities that the company already operates around that world.<\/p>\n","protected":false},"excerpt":{"rendered":"Oracle\u00a0was\u00a0reportedly sued\u00a0Wednesday (Jan. 14) by bondholders who\u00a0allege\u00a0that the company made false and misleading statements in the offering documents&hellip;\n","protected":false},"author":2,"featured_media":238701,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,2999,343,344,3132,85,46,43,9126,262,125,264],"class_list":["post-238700","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-infrastructure","tag-artificial-intelligence","tag-artificialintelligence","tag-data-centers","tag-il","tag-israel","tag-news","tag-oracle","tag-pymnts-news","tag-technology","tag-whats-hot"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/238700","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=238700"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/238700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/238701"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=238700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=238700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=238700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}