On May 19, according to the document submitted by Strategy to the US SEC, a class-action lawsuit was filed on May 16, 2025, in the Eastern District Federal Court of Virginia against Strategy and its executives (including Michael J. Saylor, Phong Le, and Andrew Kang). The plaintiffs allege that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act and related rules during the period from April 30, 2024, to April 4, 2025, specifically:
Making false and/or misleading statements about the expected profitability of the company's Bitcoin investment strategy;
Failing to disclose risks associated with Bitcoin volatility and potential significant losses that could result from Accounting Standards Update (ASU 2023-08).
The lawsuit seeks compensation for losses that investors may have suffered due to the aforementioned actions.
