MicroStrategy Faces Securities Class Action Lawsuit Over Bitcoin Strategy

MicroStrategy Incorporated (MSTR) is facing a securities class action lawsuit alleging false and misleading statements about its bitcoin-focused investment strategy. The lawsuit, filed by Kessler Topaz Meltzer & Check, LLP, seeks to protect investors who acquired Strategy securities between April 30, 2024, and April 4, 2025. The lead plaintiff deadline is July 15, 2025. The complaint alleges that Strategy overstated the profitability of its bitcoin strategy and understated the risks associated with bitcoin's volatility and potential losses. The outcome of this lawsuit may influence market perceptions of bitcoin-related investments and impact Strategy's market position.

MicroStrategy Incorporated (MSTR) is facing a securities class action lawsuit alleging false and misleading statements about its bitcoin-focused investment strategy. The lawsuit, filed by Kessler Topaz Meltzer & Check, LLP, seeks to protect investors who acquired Strategy securities between April 30, 2024, and April 4, 2025. The lead plaintiff deadline is July 15, 2025 [4].

The complaint alleges that Strategy overstated the profitability of its bitcoin strategy and understated the risks associated with bitcoin's volatility and potential losses. The outcome of this lawsuit may influence market perceptions of bitcoin-related investments and impact Strategy's market position.

On April 7, 2025, Strategy disclosed a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025 following the adoption of Accounting Standards Update No. 2023-08. This disclosure led to a significant drop in the company's stock price, falling $25.47 or 8.7% to close at $268.14 per share [1].

The lawsuit, filed by Kessler Topaz Meltzer & Check, LLP, alleges that throughout the Class Period, Defendants made materially false and misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the anticipated profitability of the Company’s bitcoin-focused investment strategy and treasury operations was overstated; (2) the various risks associated with bitcoin’s volatility and the magnitude of losses Strategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times [4].

Investors who purchased or otherwise acquired MicroStrategy securities during the specified period are encouraged to contact the law firm to learn more about their rights and potential participation in the class action. The lead plaintiff deadline is July 15, 2025 [4].

References:
[1] https://www.businesswire.com/news/home/20250710492275/en/Deadline-Soon-MicroStrategy-Incorporated-MSTR-Investors-Who-Lost-Money-Urged-To-Contact-The-Law-Offices-of-Frank-R.-Cruz-About-Securities-Fraud-Lawsuit
[4] https://www.marketscreener.com/quote/stock/STRATEGY-INCORPORATED-10105/news/MSTR-Investor-Reminder-Kessler-Topaz-Meltzer-Check-LLP-Reminds-Investors-of-Securities-Fraud-Cla-50449387/