"False and Misleading Statements": A strategy facing a class-action lawsuit to mitigate Bitcoin risks.
The company is facing a class-action lawsuit for providing "false and misleading" information regarding the expected profitability of its Bitcoin-focused investment strategy. Strategy Inc. (formerly known as Microstrategy), based in the United States, is facing a class-action lawsuit filed by Pomerantz LLP. The plaintiffs accuse the management, including CEO Michael Saylor, CEO Phong Lee, and CFO Andrew Kang, of making "false and misleading" statements regarding the expected profitability of the Bitcoin-focused investment strategy and failing to disclose the risks associated with cryptocurrency volatility.
The company stated: "It is alleged that the defendants provided false and/or misleading statements and/or failed to disclose information related to the expected profitability of the Bitcoin-focused investment strategy and treasury operations, as well as various risks associated with Bitcoin volatility."
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