At least seven law firms have filed complaints against Strategy, alleging securities fraud. Two crypto lawyers had different takes on the situation.
The securities fraud lawsuits facing Michael Saylor’s company Strategy could take years to play out — if they go anywhere at all, according to legal experts.
Strategy, formerly MicroStrategy, pioneered the use of Bitcoin (BTC) as an asset reserve for corporate treasuries. The company has been since 2020 making regular purchases of Bitcoin, with over 601,550 BTC in its balance sheets and no plans to cap the accumulation.
Now, Strategy has investors questioning its crypto approach. As of mid-July, at least seven law firms have filed complaints against Strategy. Many of the complaints have similar claims, echoing that the defendants overstated the anticipated profitability of its Bitcoin investment strategy and understated volatility risks, as well as the magnitude of losses the company could recognize following the adoption of the ASU 2023-08 accounting principles.
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