Strategy faces class action lawsuit, accused of making misleading statements regarding its Bitcoin strategy

According to the Form 8-K document submitted by Strategy to the SEC, on May 16, the company and its CEO Michael Saylor, CFO Phong Le, and executive Andrew Kang were sued in the U.S. District Court for the Eastern District of Virginia. The plaintiff Anas Hamza represents a class of investors from April 30, 2024, to April 4, 2025, accusing the company of violating relevant provisions of the Securities Exchange Act.

The plaintiff claims that the defendants made false or misleading statements regarding the company's Bitcoin investment strategy and expected profitability of financial operations, failed to disclose related information and the volatility risk of Bitcoin, and did not disclose the potential scale of losses that might be recognized after adopting new accounting standards. The lawsuit seeks unspecified damages, among other things, and Strategy has stated that it will vigorously defend itself but currently cannot predict the outcome or provide loss estimates. $BTC