Strategy and Its Executives Face Class Action Lawsuit Accused of Making False Statements About Bitcoin Investment Strategy

According to ChainCatcher, documents submitted to the US SEC by Strategy reveal that on May 16, 2025, a class action lawsuit was filed in the Federal Court of the Eastern District of Virginia against Strategy and its executives, including Michael J. Saylor, Phong Le, and Andrew Kang. The plaintiffs accuse the defendants of violating Sections 10(b) and 20(a) of the Securities Exchange Act and its related rules during the period from April 30, 2024, to April 4, 2025, specifically including:

Making false and/or misleading statements about the expected profitability of the company's Bitcoin investment strategy;

Failing to disclose risks associated with Bitcoin volatility and potential significant losses due to Accounting Standards Update (ASU 2023-08).

The lawsuit seeks compensation for investors for losses that may have been incurred due to the aforementioned actions.