New York law firm initiates class action lawsuit: Accuses Strategy company of false disclosure of Bitcoin investment information
ChainCatcher news, according to The Block, the New York law firm Pomerantz has recently filed a class action lawsuit against Strategy, led by Michael Saylor (formerly MicroStrategy), accusing the company of making false and misleading statements regarding the profitability of its Bitcoin investment strategy, in violation of federal securities laws. The lawsuit, filed in the Eastern District of Virginia, represents investors in Strategy from April 30, 2024, to April 4, 2025. Other investors can join the class action before July 15.Key allegations in the lawsuit include that Strategy exaggerated the profitability of its Bitcoin investment strategy and fund management business, downplayed the volatility risks of Bitcoin, and failed to adequately disclose the impact of adopting new accounting standards (ASU 2023-08) on its financial statements. Specifically, in the first quarter of 2025, due to the adoption of the new standards, Strategy reported an unrealized loss of $5.9 billion in digital assets, causing the stock price to drop over 8% at that time. Pomerantz alleges that the company only emphasized Bitcoin gains while concealing significant losses that could arise under fair value measurement.