Oracle's stock fell sharply by 5.03% during intraday trading on Wednesday, underperforming the broader tech sector decline.

The drop followed news that Oracle was sued by bondholders who allege the company failed to disclose its need to sell significant additional debt to fund its artificial intelligence infrastructure buildout. The lawsuit, filed in New York, names Oracle, its CEO Larry Ellison, and its banks as defendants. Bondholders claim they suffered losses due to this lack of disclosure.

This legal action has raised concerns among investors about Oracle's transparency and financial planning, contributing to the stock's steep decline.