MicroStrategy(US:MSTR) Prnewswireยท2025-05-19 21:20Core Viewpoint - A class action lawsuit has been filed against MicroStrategy Incorporated (NASDAQ: MSTR) on behalf of investors who acquired its securities between April 30, 2024, and April 4, 2025, alleging that the company misled investors regarding the profitability of its bitcoin-focused investment strategy [1][2]. Allegations - The lawsuit claims that during the class period, MicroStrategy failed to disclose that the anticipated profitability of its bitcoin investment strategy was overstated, and the risks associated with bitcoin's volatility were understated [2]. - It is alleged that the company's public statements were materially false and misleading at all relevant times [2]. Financial Impact - On April 7, 2025, MicroStrategy disclosed a $5.91 billion unrealized loss on its digital assets for Q1 2025, which was expected to lead to a net loss for the quarter [3]. - Following this announcement, the company's Class A common stock price fell by $25.47 per share, or 8.67%, closing at $268.14 per share on the same day [3]. - On May 1, 2025, the company confirmed the $5.9 billion unrealized fair value loss on digital assets during the first quarter, attributing it to a fair value accounting methodology applied to its bitcoin assets after a significant depreciation in value [4]. Next Steps for Investors - Shareholders interested in participating in the class action must file their papers with the court by July 15, 2025, to serve as lead plaintiff [5]. - Investors can choose to remain absent class members without participating in the case [5].