Strategy and its executives face a class action lawsuit in a U.S. court.

WuSaidBlockchainW · 2025-05-19T12:32:58+00:00

Strategy and its executives are facing a class-action lawsuit alleging the dissemination of misleading Bitcoin investment information, failing to disclose related risks. The specific compensation amount is unclear, and the company states it will actively contest the allegations; the outcome and potential losses remain unpredictable.

WuSaidBlockchainW

2025-05-19 12:32:58

Abstract generation in progress

According to Wu, Strategy (formerly MicroStrategy) disclosed in a Form 8-K filing with the U.S. SEC that Strategy and its CEO Michael Saylor, CFO Phong Le, and executive Andrew Kang faced a class action lawsuit on May 16 in the U.S. District Court for the Eastern District of Virginia. The plaintiffs claimed that between April 2024 and April 2025, the company made misleading statements regarding its Bitcoin investment strategy and financial expectations, failing to adequately disclose the potential risks associated with Bitcoin fluctuations and new accounting standards. The lawsuit did not disclose the specific amount of damages sought. Strategy stated that it would actively defend itself and currently cannot predict the outcome of the lawsuit or potential losses.

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