A group of bondholders sued Silicon Valley tech company Oracle over the way it has chosen to finance its projects in AI infrastructure, as per a Reuters report.
The group seeking representation claims that the company misrepresented how mouch financing they needed to the bondholders, which adversely affected the value of their debt.
The case has been filed by the plaintiffs in a Manhattan court with the affected parties saying they bought $18 billion worth of bonds from Oracle; they were caught offguard when Oracle went back to the market and this time secured $38 billion worth of loans to help finance its projects.
The value of the bonds fell promptly due to the potential for higher credit risk felt by bond markets.
At the time of writing, Oracle shares were priced at $192.7, down by 4.72%