TechFlow news, on July 4, prominent U.S. law firms Frank R. Cruz and Pomerantz announced separate class-action lawsuits against MicroStrategy Incorporated (Nasdaq: MSTR), accusing the company of making misleading statements to investors between April 30, 2024, and April 4, 2025. The lawsuits allege that MicroStrategy overstated the expected benefits of its "Bitcoin reserve company" strategy while downplaying the risks associated with Bitcoin price volatility, particularly potential losses under the new accounting standard ASU 2023-08.
Pomerantz's lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia (Case No. 25-cv-00861) and specifically highlights the company's April 7, 2025 disclosure that it recognized approximately $5.9 billion in unrealized losses due to Bitcoin depreciation during the first quarter, causing its stock price to drop 8.67% that day. Both law firms have set July 15, 2025 as the deadline for investors to apply to serve as lead plaintiff. Affected investors may contact the respective law firms to learn about their legal rights.
