Oracle Faces Bondholder Lawsuit Over Concealed Debt Risks

Oracle is being sued by bondholders who claim they incurred losses due to the company's undisclosed plans to sell more debt. The lawsuit alleges that Oracle, chaired by Larry Ellison, misled investors about future borrowing needs to build AI infrastructure. Oracle denies comment on the issue.

Oracle is at the center of a lawsuit filed by bondholders alleging financial losses due to undisclosed plans to issue more debt.

The legal action, initiated in a New York state court, accuses Oracle, led by billionaire Larry Ellison, of misleading investors about its future borrowing intentions to enhance its AI infrastructure.

The bondholders' lawsuit aims to hold Oracle and key figures accountable, including Ellison and former CEO Safra Catz, under the federal Securities Act of 1933. Oracle has not commented on the ongoing legal proceedings.

(With inputs from agencies.)