Bitcoin Bull Michael Saylor’s Company Strategy Hit with Multiple Lawsuits – Here’s the Critical Date
2025/06/27 20:16Bitcoin-focused investment firm Strategy (formerly MicroStrategy) is facing at least five separate class-action lawsuits over $6 billion in unrealized Bitcoin losses, alleging the company made misleading statements to investors about the risks and profitability of Bitcoin.
The initial lawsuit was filed by Pomerantz LLP on May 16. However, four other law firms — Gross Law Firm, Bronstein Gewirtz & Grossman, Kessler Topaz Meltzer & Check and Levi & Korsinsky — have opted to file separate lawsuits with similar content rather than join the lawsuit.
That’s not unusual, legal experts say. “In class-action securities litigation, law firms compete for the lead counsel role because that role can be very lucrative, with fees in the tens of millions of dollars,” said Adam Pritchard, a professor at the University of Michigan Law School.
Each of the lawsuits alleges that the company made “materially false and misleading” statements about the profitability and risks of Bitcoin investments between April 30, 2024 and April 4, 2025.
Professor Ann Lipton of the University of Colorado School of Law similarly emphasized the importance of the lead plaintiff position, saying, “The lead plaintiff controls the litigation and determines the class attorneys. In cases that appear to be strong, many firms and plaintiffs file lawsuits to try their luck.”
Law firms looking to get ahead in the litigation process are issuing public press releases inviting more investors to join the case. These statements often draw attention to the July 15 deadline, when the court will choose a lead plaintiff and the other cases will be consolidated under that umbrella.
The primary goal of law firms, Pritchard says, is to include the most harmed investor among their plaintiffs. The Securities Private Litigation Reform Act of 1995 requires that the lead plaintiff role be given to the investor who suffered the most harm and volunteered to take on that role.
Lipton sums it up this way: “An investor who has had more losses will monitor the case and the lawyers more carefully. That’s why institutional investors are generally preferred.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Micron plunges 22% in a week, is it a buying opportunity for memory chips? Bank of America bets on supercycle extending to 2028
The bullish forecasts by top Wall Street investment institutions such as Bank of America are underpinned by an AI training paradigm dominated by RSI, the expansion of AI agent applications focused on efficient AI inference processes, and the rising demand for HBM, server memory, and enterprise SSDs. Meanwhile, advanced manufacturing processes, capacity conversion, and yield ramp-up are restricting supply release, and long-term supply agreements are further improving sales visibility.
Australian Dollar breaks 0.69 as hot US CPI raises 50-bp Fed hike risk
Philadelphia Fed President Paulson supports gradual rate hikes but warns inflation is still “stuck” above target
Core inflation is "stuck" in the 2.5%-3% range, with triple pressures from tariffs, energy, and AI data center demand. Paulson insists on gradual rate hikes while setting clear trigger conditions—if inflation expectations shift upwards or wage pressures build, he will move more quickly. Meanwhile, Governor Waller stated that if October's core CPI rises 0.3% month-on-month, a 50 basis point rate hike in December should be considered. Dallas Fed's Logan said at least two more rate hikes are needed.
During Anthropic IPO roadshow, OpenAI also discloses financial data: Q3 revenue falls short, losses far exceed expectations
OpenAI's revenue in Q3 reached $10 billion, marking a nearly 50% quarter-on-quarter increase. Its annualized run rate is approximately $50 billion, but operating losses have expanded from $10.1 billion to $10.9 billion. Competitor Anthropic has begun its IPO roadshow, with Q3 revenue of $17 billion and losses of only $567 million, leading in both scale and profitability.
Crypto prices
More
