New York law firm files class action lawsuit against Strategy, accusing it of misleading investors about Bitcoin strategy profitability
Odaily News New York law firm Pomerantz LLP has filed a class action lawsuit against Strategy, Inc. (formerly MicroStrategy) in the Eastern District Court of Virginia, alleging that it violated federal securities laws by issuing false and misleading statements about the profitability of its Bitcoin investment strategy between April 30, 2024 and April 4, 2025.
The lawsuit alleges that Strategy exaggerated the profitability of its bitcoin investments and financial operations, downplayed the risk of price volatility, and failed to fully disclose the actual impact on its financial statements after adopting FASB accounting standard ASU 2023-08, which requires crypto assets to be measured at fair value, replacing the previous cost impairment model that recognized impairment only when prices fell.
Pomerantz pointed out that the company generated $5.9 billion in unrealized losses based on new accounting standards in the first quarter of 2025, causing the stock price to fall by more than 8%, but the company continued to issue optimistic forecasts and concealed potential huge losses. Other investors can now apply to join the class action lawsuit before July 15. (The Block)
You may also like
Gainers
Latest Crypto News
「Whale」 Ethereum Multi-Step again Partially Liquidated, Account Balance Fell Below $270,000
Cryptocurrency Fear and Greed Index Drops to 24, Market Enters "Extreme Fear" Mode Again
「Cool-headed King of Shorting」 entered a new MON short position, earlier this morning closed a long position on BTC and SOL before reversing to open a short position
In the past 4 hours, the entire network has seen $435 million in liquidations, with longs accounting for $424 million of the total.
「CZ's Countertrade」 Long Position's Unrealized Loss Expands to $26 Million, Now the Largest Long on Hyperliquid for ETH and XRP
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Services:support@weex.com