$BTC MicroStrategy (MSTR) and Executives Hit with Class Action Lawsuit, Per SEC Filing

On May 16, 2025, a class action lawsuit was filed in Virginia federal court targeting MicroStrategy and key executives: Michael Saylor (Founder & Executive Chairman), Phong Le (CEO), and Andrew Kang (CFO).

📌 Claims:

Anas Hamza, representing unnamed investors, alleges that from April 30, 2024, to April 4, 2025, MicroStrategy:

Misled investors by exaggerating the profitability of its Bitcoin investment strategy.
Hid significant risks tied to BTC price swings and losses under updated accounting standards.

💼 Lawsuit Goals:

The plaintiffs demand:
Damages for investor losses
Interest payments
Coverage of legal and court costs

🧾 MicroStrategy’s Stance:

MicroStrategy vows to robustly contest the claims, noting it’s too soon to predict the outcome or financial impact.

This lawsuit heightens scrutiny on public firms pursuing bold crypto strategies, particularly as regulatory and accounting landscapes shift.