Strategy’s $40 billion Bet on Bitcoin has become the subject of a class action lawsuit. The plaintiffs accuse the company’s executives of making misleading statements. This comes amid the firm’s latest purchase of 7,390 BTC. 

Strategy Faces Lawsuit Over Bitcoin Bet

According to Strategy’s filing with the SEC, the plaintiffs filed a class action lawsuit against the firm on May 16 against the company, its co-founder, Michael Saylor, the CEO, Phong Le, and Executive Vice President Andrew Kang. The lawsuit alleges that Strategy and its executives violated the Securities Exchange Act. 

The plaintiff and class representative Anas Hamza claims on behalf of the class of investors that from April 30, 2024, to April 4, 2025, the defendants made false and misleading statements with respect to Strategy’s Bitcoin Treasury. 

The investors further allege that Strategy and its executives failed to disclose information about the anticipated profitability of its bitcoin-focused investment strategy and treasury operations. Saylor and his company are also accused of failing to disclose the various risks associated with BTC’s volatility and the magnitude of the losses. 

The company and its executives plan to defend against these claims rather than reach a settlement. The plaintiffs are seeking unspecif

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Author: Scott Matherson