US Law Firm Files Class Action Against MicroStrategy…"Alleged Securities Law Violations"
Summary
- It was reported that MicroStrategy, a US-listed company, is facing a class-action lawsuit for allegedly violating US federal securities laws.
- The law firm Pomerantz claimed that MicroStrategy exaggerated the profitability of its Bitcoin-centric financial strategy.
- Pomerantz also reported that MicroStrategy is accused of understating the volatility risks associated with Bitcoin investments in its disclosures.
MicroStrategy, a US-listed company holding the largest amount of Bitcoin (BTC) globally, is facing a class-action lawsuit over alleged violations of US federal securities laws.
According to The Block on the 3rd (local time), the New York-based law firm Pomerantz filed a class action against MicroStrategy in the Eastern District Court of Virginia. Pomerantz is reported to represent investors who invested in MicroStrategy from April last year to this April. Pomerantz stated, "Other investors may also participate in the class action until the 15th of this month."
Pomerantz maintains that MicroStrategy violated US federal securities laws. Specifically, MicroStrategy is accused of overstating the profitability of its Bitcoin-centric financial strategy. The company is also alleged to have downplayed the volatility risks of Bitcoin investments in its disclosures to investors.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
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