Overview
- The lead plaintiffs voluntarily withdrew their case in the U.S. District Court for the Eastern District of Virginia, and the dismissal was entered with prejudice.
- The suit had named Strategy Inc., Michael J. Saylor, CEO Phong Le, and CFO Andrew Kang, with Pomerantz LLP and Cohen Milstein Sellers & Toll representing investors.
- Plaintiffs alleged the company misled shareholders about the effects of adopting FASB ASU 2023-08 and its Bitcoin strategy after reporting a $4.22 billion Q1 2025 net loss and nearly $6 billion in unrealized crypto losses.
- The dismissal binds only the named plaintiffs, leaving open the possibility of separate actions by other shareholders, and the case ended without a merits ruling or disclosed settlement.
- Strategy remains the largest corporate holder of Bitcoin with 632,457 BTC valued at about $68 billion, keeping scrutiny of its disclosures and accounting practices in focus.