Microstrategy Class Action Lawsuit: Painstaking, Trustworthy & Authoritative Answers to 8 Magnificent Frequently Asked Questions [2025]

Read on for answers to the eight most frequently asked questions from investors in the MicroStrategy lawsuit.

1. What Are the Allegations in the MicroStrategy Class Action Lawsuit?

Since 2020, MicroStrategy has increasingly focused on purchasing and holding bitcoin, a type of crypto-currency, as a long-term business strategy.  According to the complaint, on January 1, 2025, MicroStrategy adopted the Financial Accounting Standards Board’s Accounting Standards Update No. 2023-08, Intangibles – Goodwill and Other – Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which requires publicly traded companies to measure their crypto assets at fair value in their financial statements, with gains and losses from changes in the fair value of those assets recognized in net income in each reporting period.

The MicroStrategy class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:

1. The anticipated profitability of MicroStrategy’s bitcoin-focused investment strategy and treasury operations was overstated; and
2. The various risks associated with bitcoin’s volatility and the magnitude of losses MicroStrategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated.

 

The MicroStrategy class action lawsuit further alleges that on April 7, 2025, MicroStrategy disclosed that, following its adoption of ASU 2023-08, it recognized a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025, which was expected to result in a net loss for the quarter.  As a result, MicroStrategy warned investors that “[w]e may not be able to regain profitability in future periods, particularly if we incur significant unrealized losses related to our digital assets,” according to the complaint.

The MicroStrategy class action lawsuit alleges that on this news, the price of MicroStrategy stock fell nearly 9%.

2. Who is Affected by the MicroStrategy Class Action Lawsuit?

The MicroStrategy class action lawsuit primarily affects investors who purchased shares during the period in which the alleged misconduct occurred. If you invested in MicroStrategy. during this time, you could be part of the affected class and eligible for compensation if the lawsuit succeeds.

Identifying whether you are part of the affected group is crucial for understanding your rights and potential benefits. The MicroStrategy class action lawsuit may involve a specific time frame and set of circumstances that define the class of investors who can participate. Knowing these details will help you determine your eligibility and take appropriate action.

In addition to investors, the lawsuit can also impact the company’s executives, board members, and other stakeholders. The outcome of the lawsuit could influence MicroStrategy’s reputation, financial stability, and future operations, affecting all parties associated with the company. Staying informed about the lawsuit’s progress is essential for anyone connected to MicroStrategy.

3. When Is the Lead Plaintiff Deadline in the MicroStrategy Lawsuit?

Lead plaintiff motions for the MicroStrategy class action lawsuit must be filed with the court no later than July 15, 2025. When a securities class action is filed:

1. The person who files the first complaint is required to publish a notice announcing the filing.
2. Anyone who wants to be the lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.

4. What the the Benefits of Serving as a Lead Plaintiff in the MicroStrategy Lawsuit?

1. Negotiating more competitive attorney fees and reducing litigation costs.
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

5. What Are the Responsibilities the Lead Plaintiff Will Have in the MicroStrategy Lawsuit?

1. Selecting, monitoring, and overseeing Lead Counsel.​
2. Reviewing and commenting on court filings on behalf of the class.
3. Discussing litigation strategies with the Lead Counsel.
4. Attending depositions (if necessary) and giving a deposition.
5. Attending hearings (if necessary).
6. Participating in mediation and the trial (if necessary).
7. Provide input on any decision concerning the settlement of the securities class action.