BlockBeats news, on May 19, according to documents submitted by Strategy to the SEC, a class action lawsuit against Strategy and its executives (including Michael J. Saylor, Phong Le, and Andrew Kang) was filed in the Eastern District of Virginia Federal Court on May 16, 2025. The plaintiffs accuse the defendants of violating Section 10(b) and Section 20(a) of the Securities Exchange Act and its related rules during the period from April 30, 2024, to April 4, 2025, specifically including:
Making false and/or misleading statements regarding the expected profitability of the company's Bitcoin investment strategy.
Failing to disclose risks related to Bitcoin volatility, as well as significant losses that may result from the update of accounting standards (ASU 2023-08).
The lawsuit seeks compensation for losses that investors may have suffered due to the above actions.
