According to reports, the New York law firm Pomerantz has filed a class action lawsuit against Strategy in the Eastern District of Virginia. The lawsuit alleges that statements made during the period from April 30, 2024, to April 4, 2025, were false and misleading.
The lawsuit claims that Strategy overestimates the profitability of Bitcoin holdings and underestimates the risks of price volatility, failing to adequately disclose the impact of the new accounting standard ASU 2023-08. This standard requires that cryptocurrency assets 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 prices of more than 8%.
