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A group of bondholders has launched a class action against Oracle, claiming they suffered losses due to the company's failure to disclose the need for significant additional debt to finance AI-related infrastructure. The initial filing was made in a Manhattan state court and involves investors who purchased $18 billion in securities issued by Oracle on September 25.

This issuance occurred shortly before Oracle announced a $300 billion five-year contract to provide computing power to OpenAI. Just seven weeks later, Oracle sought an additional $38 billion in loans for two data centers supporting the OpenAI agreement, catching investors off guard.

The announcement of new debt led to a sharp decline in bond prices and an increase in yields, reflecting increased credit risk. The bondholders are suing Oracle, CEO Larry Ellison, former CEO Safra Catz, and the underwriters for alleged false and misleading statements in the offering documents, seeking damages.