Oracle Faces Bondholder Lawsuit Over AI Funding Disclosure as Shares Slide 4%
Oracle Corporation (ORCL) shares dropped approximately 4% following a lawsuit filed by bondholders alleging inadequate disclosure of the company's aggressive borrowing plans to fund AI infrastructure. The legal action centers on a rapid $38 billion loan raise shortly after an $18 billion bond sale, which plaintiffs claim should have been transparently communicated.
Market concerns intensified after Blue Owl Capital abruptly exited a Michigan data center project, citing unfavorable terms and political volatility. The case underscores growing investor scrutiny of Big Tech's balance sheet leverage in the AI arms race, particularly around Oracle's OpenAI partnership commitments.