According to reports from Wu, the New York law firm Pomerantz has filed a class action lawsuit against Strategy in the Eastern District of Virginia. The lawsuit accuses it of making false and misleading statements during the period from April 30, 2024, to April 4, 2025.
The lawsuit claims that Strategy overestimates the profitability of Bitcoin holdings, underestimates the risk of price volatility, and has not fully disclosed the impact of the new accounting standard ASU 2023-08. This standard requires cryptocurrencies to be measured at fair value.
As a result, Strategy recognized an unrealized loss of $5.9 billion in the first quarter of 2025, leading to a decline in stock price of more than 8%.
