Odaily Planet Daily reports that the New York law firm Pomerantz LLP has filed a class action lawsuit against Strategy Company (formerly MicroStrategy) in the Eastern District Court of Virginia, alleging that it made false and misleading statements regarding the profitability of its Bitcoin investment strategy during the period from April 30, 2024, to April 4, 2025, in violation of federal securities laws. The lawsuit claims that Strategy exaggerated the profitability of Bitcoin investments and financial operations, downplayed the risks of price volatility, and failed to adequately disclose the actual impact on financial statements after adopting FASB accounting standard ASU 2023-08. This standard requires measuring cryptocurrency assets at fair value, replacing the previous cost impairment model that only recognized impairments when prices fell. Pomerantz pointed out that the company incurred an unrealized loss of $5.9 billion in the first quarter of 2025 based on the new accounting standards, leading to a more than 8% drop in stock price, yet the company continued to issue optimistic forecasts while concealing potential massive losses. Other investors can apply to join the class action lawsuit by July 15.

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