MicroStrategy is targeted by a lawsuit for omitting risks in its bitcoin bet
According to the lawsuit, the defendants allegedly made false and misleading statements, omitted relevant information about the expected profitability of the company's focused investment strategy.
MicroStrategy, a software company that invests in bitcoin, reported in a regulatory document that it was targeted by a class action filed in the United States District Court.
The lawsuit names as defendants the company itself, CEO Michael Saylor, CEO Phong Le, and CFO Andrew Kang, and alleges violations of securities law.
The plaintiff, Anas Hamza, claims to represent a class of investors who operated between April 30, 2024, and April 4, 2025.
According to the lawsuit, the defendants allegedly made false and misleading statements, omitted relevant information about the expected profitability of the company's bitcoin-focused investment strategy, as well as the inherent risks of cryptocurrency volatility and the magnitude of potential losses.
The lawsuit seeks unspecified damages, interest, and other compensation for the affected investors.
In response, MicroStrategy stated that it intends to defend itself "vigorously" against the allegations.
