At Least Five Law Firms Target Former Strategy Over Misleading BTC Risk Disclosures

Bitcoin-focused investment firm Strategy Inc. (formerly MicroStrategy) is facing mounting legal pressure as at least five law firms have filed class-action lawsuits over the company’s $6 billion in unrealized Bitcoin losses.

The legal claims allege that Strategy made “materially false and misleading” statements about the risks and profitability of its Bitcoin investments between April 30, 2024, and April 4, 2025.

The first lawsuit was filed by Pomerantz LLP on May 16. Since then, Gross Law Firm, Bronstein Gewirtz & Grossman, Kessler Topaz Meltzer & Check, and Levi & Korsinsky have filed similar suits independently, rather than joining the initial case.

Legal experts say this approach is common in securities litigation, where firms compete for the lucrative role of lead counsel. “That role can yield fees in the tens of millions,” said Adam Pritchard, professor at the University of Michigan Law School.

Race for Lead Plaintiff Intensifies Ahead of July 15 Deadline

Under the Private Securities Litigation Reform Act of 1995, the court will appoint as lead plaintiff the investor who suffered the largest financial harm and voluntarily steps forward. Law firms are actively seeking such investors to strengthen their case and boost their chances of being named lead counsel.

“An investor who has had more losses will monitor the case and the lawyers more carefully,” explained Professor Ann Lipton of the University of Colorado. “That’s why institutional investors are generally preferred.”

Law firms are also issuing press releases to attract affected shareholders before the July 15 deadline, after which the cases will be consolidated into a single action.

The outcome could have significant implications for Strategy’s reputation and Bitcoin treasury strategy, which once positioned it as a corporate pioneer in digital asset accumulation.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.