A law firm in New York has filed a class action lawsuit against Strategy, accusing it of misleading investors regarding Bitcoin investment information disclosure.

Gate News bot news, the New York law firm Pomerantz LLP has filed a class action lawsuit against Strategy, led by Michael Saylor, accusing the company of making false and misleading statements regarding the profitability of its Bitcoin investment strategy, in violation of federal securities law.

The lawsuit has been filed in the Eastern District Court of Virginia on behalf of Strategy’s investors from April 30, 2024, to April 4, 2025. Pomerantz stated that other investors can join the class action lawsuit before July 15.

The lawsuit claims that Strategy Company exaggerated the profitability of its Bitcoin investment strategy and financial operations while downplaying the volatility risks associated with Bitcoin. The statement claims that this resulted in the company’s public statements being “materially false and misleading.”

The lawsuit also revolves around the accounting standards ASU 2023-08 adopted by Strategy Company, which follows the Financial Accounting Standards Board (FASB) in the United States and requires the fair value accounting of crypto assets. This replaces the company’s previous cost-less impairment model, which only recognized impairments when prices fell and did not mark up price increases before the asset was sold.

Source: The Block