According to Odaily Planet Daily, Strategy (formerly MicroStrategy) is facing at least five class action lawsuits initiated by law firms due to allegations of securities fraud related to its Bitcoin investment statements. Multiple legal experts have noted that it is not uncommon for several law firms to compete for lead plaintiff status, as the leading firm can earn significant attorney fees. The lawsuits stem from Strategy's purchase of $7.7 billion in Bitcoin in the first quarter of 2024, which resulted in nearly $6 billion in unrealized losses due to the decline in cryptocurrency prices. Currently, Strategy has responded in SEC filings stating that it will actively address the related accusations, but it cannot predict the outcome of the cases.

#BTC #SEC