Strategy and its executives are facing a class-action lawsuit, accused of making false statements regarding their Bitcoin investment strategy

ChainCatcher message, according to the documents submitted to the SEC by Strategy, on May 16, 2025, a class action lawsuit was filed in the Eastern District of Virginia Federal Court against Strategy and its executives (including Michael J. Saylor, Phong Le, and Andrew Kang). The plaintiffs allege that the defendants violated Section 10(b) and Section 20(a) of the Securities Exchange Act and its related rules during the period from April 30, 2024, to April 4, 2025, specifically including:

• Making false and/or misleading statements regarding the expected profitability of the company's Bitcoin investment strategy;
• Failing to disclose the risks associated with Bitcoin volatility, as well as significant losses that may result from the update of accounting standards (ASU 2023-08).

The lawsuit seeks compensation for losses that investors may have suffered due to the aforementioned actions.