Overview

• Lead plaintiffs voluntarily dismissed the case in the Eastern District of Virginia, with prejudice, according to filings dated Aug. 28–29.
• The proposed class action had been led by Cohen Milstein and Pomerantz and named Michael Saylor, CEO Phong Le, and CFO Andrew Kang as defendants.
• Investors alleged the company misled shareholders about the effects of adopting FASB ASU 2023-08, citing a $4.22 billion Q1 2025 net loss and nearly $6 billion in unrealized losses.
• Subsequent results showed large fair-value gains, including a reported $10 billion net income and $14 billion operating income in Q2 2025 tied to Bitcoin appreciation.
• Strategy remains the largest corporate Bitcoin holder at about 632,457 BTC worth roughly $68 billion, and its disclosures and valuation approach continue to draw scrutiny.