Strategy hit with class action lawsuit alleging it made misleading statements about Bitcoin strategy

PANews reported on May 19 that according to the Form 8-K filed with the SEC by Strategy (formerly MicroStrategy), on May 16, the company, its CEO Michael Saylor, CFO Phong Le, and executive Andrew Kang were subject to a class-action lawsuit in the Eastern District Federal Court of Virginia. Plaintiff Anas Hamza, representing investors from April 30, 2024, to April 4, 2025, accused the company of violating relevant provisions of the Securities Exchange Act. The plaintiff claimed that the defendants made false or misleading statements about the company's Bitcoin investment strategy and expected financial operational profitability, failed to disclose related information and Bitcoin volatility risks, and did not disclose the potential scale of losses that might be recognized after adopting new accounting standards. The lawsuit demands unspecified damages. MicroStrategy stated that it will vigorously defend itself but cannot currently predict the outcome or provide loss estimates.