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4d ago

Strategy Investors Drop Bitcoin Accounting Class Action With Prejudice

The voluntary dismissal closes the Virginia case for the named plaintiffs with no public explanation or settlement.

Strategy investors dismiss lawsuit against the company over misleading Bitcoin investment claims
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Overview

  • The lead plaintiffs voluntarily withdrew their case in the U.S. District Court for the Eastern District of Virginia, and the dismissal was entered with prejudice.
  • The suit had named Strategy Inc., Michael J. Saylor, CEO Phong Le, and CFO Andrew Kang, with Pomerantz LLP and Cohen Milstein Sellers & Toll representing investors.
  • Plaintiffs alleged the company misled shareholders about the effects of adopting FASB ASU 2023-08 and its Bitcoin strategy after reporting a $4.22 billion Q1 2025 net loss and nearly $6 billion in unrealized crypto losses.
  • The dismissal binds only the named plaintiffs, leaving open the possibility of separate actions by other shareholders, and the case ended without a merits ruling or disclosed settlement.
  • Strategy remains the largest corporate holder of Bitcoin with 632,457 BTC valued at about $68 billion, keeping scrutiny of its disclosures and accounting practices in focus.