Strategy is facing a class action lawsuit, accused of making misleading statements about its Bitcoin strategy

According to the Form 8-K filing submitted by Strategy (formerly MicroStrategy) to the SEC, on May 16th, the company, along with its CEO Michael Saylor, CFO Phong Le, and executive Andrew Kang, were sued collectively in the Federal District Court for the Eastern District of Virginia. The plaintiff Anas Hamza, representing the collective of investors from April 30, 2024 to April 4, 2025, accuses the company of violating relevant provisions of the Securities and Exchange Act. The plaintiff claims that the defendant made false or misleading statements regarding the company's Bitcoin investment strategy and expected profitability of financial operations, did not disclose relevant information and Bitcoin volatility risks, and did not disclose the potential size of losses that may be recognized after adopting new accounting standards. The lawsuit demands payment of unspecified damages, etc. MicroStrategy stated that it will actively defend itself, but currently cannot predict the outcome or provide an estimate of losses.