The company Strategy and its executives are facing a class action lawsuit alleging fraudulent misrepresentation of their Bitcoin investment strategy.

BlockBeats News, May 19th - According to a filing submitted to the U.S. SEC by Strategy, on May 16, 2025, a collective lawsuit was filed against Strategy and its executives (including Michael J. Saylor, Phong Le, and Andrew Kang) in the Eastern District of Virginia federal court. The plaintiffs allege that the defendants violated Section 10(b) and Section 20(a) of the Securities Exchange Act and related rules between April 30, 2024, and April 4, 2025, including:

- Making false and/or misleading statements about the expected profitability of the company's Bitcoin investment strategy;

- Failing to disclose risks related to Bitcoin's volatility and significant losses that may result from accounting standard updates (ASU 2023-08).

This lawsuit seeks compensation for investors who may have suffered losses due to the aforementioned actions.