Oracle (ORCL) is being sued by bondholders who claim they suffered losses because the company failed to disclose it needed to sell significant additional debt in order to create its AI infrastructure, Reuters’ Jonathan Stempel reports. The proposed class action lawsuit was filed in a New York state court in Manhattan on behalf of shareholders who purchased $18B of notes and bonds that Oracle issued in September, two weeks after the company announced a $300B, five-year contract to supply Microsoft-backed (MSFT) OpenAI with computing power, the author notes. The investors involved in the suit allege they were blindsided when the company returned to the capital markets just seven weeks later seeking $38B of loans to fund two data centers to support the OpenAI deal, the author says.
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