Overview

• Plaintiffs voluntarily withdrew the proposed class action in the U.S. District Court for the Eastern District of Virginia, and the dismissal was entered with prejudice.
• The suit, filed in May, alleged Strategy misled shareholders about adopting FASB’s ASU 2023-08 and the risk of multibillion-dollar unrealized losses flowing through earnings.
• Court records list Cohen Milstein Sellers & Toll and Pomerantz LLP as plaintiffs’ counsel, and attorneys did not explain the withdrawal or confirm any settlement.
• The complaint followed a volatile stretch in results, including a reported $4.22 billion net loss and nearly $6 billion in unrealized crypto losses in Q1 2025, then record Q2 profits driven by mark-to-market gains.
• Strategy remains a major Bitcoin holder with 632,457 BTC valued at roughly $68 billion, keeping scrutiny on its disclosures and financing of further purchases.