MicroStrategy Incorporated d/b/a Strategy Class Action Lawsuit - MSTR; STRK; STRF
Case Summary
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The MicroStrategy class action lawsuit seeks to represent purchasers or acquirers of MicroStrategy Incorporated d/b/a Strategy (NASDAQ: MSTR; STRK; STRF) securities between April 30, 2024 and April 4, 2025, inclusive (the “Class Period”). Captioned Hamza v. MicroStrategy Incorporated d/b/a Strategy, No. 25-cv-00861 (E.D. Va.), the MicroStrategy class action lawsuit charges MicroStrategy and certain of MicroStrategy’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the MicroStrategy class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the MicroStrategy class action lawsuit must be filed with the court no later than July 15, 2025.
CASE ALLEGATIONS: Since 2020, MicroStrategy has increasingly focused on purchasing and holding bitcoin, a type of crypto-currency, as a long-term business strategy. According to the complaint, on January 1, 2025, MicroStrategy adopted the Financial Accounting Standards Board’s Accounting Standards Update No. 2023-08, Intangibles – Goodwill and Other – Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which requires publicly traded companies to measure their crypto assets at fair value in their financial statements, with gains and losses from changes in the fair value of those assets recognized in net income in each reporting period.
The MicroStrategy class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) the anticipated profitability of MicroStrategy’s bitcoin-focused investment strategy and treasury operations was overstated; and (ii) the various risks associated with bitcoin’s volatility and the magnitude of losses MicroStrategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated.
The MicroStrategy class action lawsuit further alleges that on April 7, 2025, MicroStrategy disclosed that, following its adoption of ASU 2023-08, it recognized a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025, which was expected to result in a net loss for the quarter. As a result, MicroStrategy warned investors that “[w]e may not be able to regain profitability in future periods, particularly if we incur significant unrealized losses related to our digital assets,” according to the complaint. The MicroStrategy class action lawsuit alleges that on this news, the price of MicroStrategy stock fell nearly 9%.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired MicroStrategy securities during the Class Period to seek appointment as lead plaintiff in the MicroStrategy class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the MicroStrategy class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the MicroStrategy class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the MicroStrategy class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig.