Odaily News According to the Form 8-K document submitted by Strategy to the SEC, on May 16, the company and its CEO Michael Saylor, CFO Phong Le and executive Andrew Kang were sued in the United States District Court for the Eastern District of Virginia. Plaintiff Anas Hamza represented a group of investors between April 30, 2024 and April 4, 2025, accusing the company of violating relevant provisions of the Securities Exchange Act.
The plaintiffs claimed that the defendants made false or misleading statements about the company's bitcoin investment strategy and expected profitability of financial operations, failed to disclose relevant information and bitcoin volatility risks, and failed to disclose the scale of losses that may be recognized after adopting new accounting standards. The complaint requires payment of unspecified damages, etc. Strategy said it will actively defend itself, but it is currently unable to predict the results or provide loss estimates.