According to Decrypt, Bitcoin giant Strategy is facing at least five class action lawsuits from law firms over allegations of securities fraud related to its Bitcoin investment public statements. Several legal experts have stated that it is not uncommon for multiple law firms to compete for the dominant plaintiff position in such cases, and the dominant law firm can receive considerable attorney fees. The lawsuit stems from Strategy's purchase of $7.7 billion worth of Bitcoin in the first quarter of 2024, which resulted in nearly $6 billion in unrealized losses due to a drop in the coin price. At present, Strategy has responded in the SEC filing that it will actively respond to the relevant allegations, but cannot predict the outcome of the case.
