According to Deep Tide TechFlow news, on July 3, a prominent U.S. law firm, Pomerantz, announced on July 2, 2025, that it has filed a class action lawsuit against MicroStrategy Inc. (NASDAQ: MSTR) and certain of its executives. The lawsuit claims that the company misled investors between April 30, 2024, and April 4, 2025, by failing to adequately disclose the risks of its 'Bitcoin reserve company' strategy.
The lawsuit alleges that MicroStrategy underestimated the significant losses that could result from Bitcoin price fluctuations after adopting the new accounting standard ASU 2023-08. On April 7, 2025, the company disclosed an unrealized loss of approximately $5.9 billion for the first quarter due to Bitcoin devaluation, causing the company's stock price to drop 8.67% on that day, closing at $268.14 per share.
Investors who purchased or obtained MicroStrategy securities during the above period may apply to the court to become the lead plaintiff by July 15, 2025. This class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia, case number 25-cv-00861.