At least five law firms have filed nearly identical class-action lawsuits in U.S. federal courts against software and Bitcoin holding company Strategy, formerly known as MicroStrategy, alleging securities fraud related to the company’s Bitcoin disclosures.
The complaints, filed separately over the past month, accuse Strategy of misleading investors about the financial risks and expected returns of its aggressive Bitcoin acquisition strategy. The alleged misstatements span from April 30, 2024, to April 4, 2025.
The first complaint was submitted by Pomerantz LLP on May 16. Since then, Gross Law Firm, Bronstein Gewirtz & Grossman, Kessler Topaz Meltzer & Check, and Levi & Korsinsky have followed with similar filings. All suits claim the company made “materially false and misleading” public statements related to its Bitcoin treasury strategy.
Legal Firms Compete for Lead Counsel Position
Legal experts say the flurry of lawsuits is typical in high-profile securities class actions. The Private Securities Litigation Reform Act of 1995 allows multiple plaintiffs to file before a judge appoints a lead plaintiff, who will then select the law firm to represent the entire class.
“Law firms jockey for position as lead counsel in securities class actions because the fees can be very lucrative,” said University of Michigan Law School professor Adam Pritchard—“tens of millions of dollars and occasionally more in the biggest cases.”
Filing early and separately allows firms to signal their interest and compete for the lead role. Ann Lipton, a law professor at the University of Colorado, said firms also try to attract large institutional investors as plaintiffs because courts typically award the lead plaintiff position to the investor with the largest losses.
Plaintiff Deadline Looms in July
The law firms have issued multiple press releases seeking additional plaintiffs, many highlighting the approaching deadline of July 15, when a judge is expected to appoint a lead plaintiff. At that point, the court will likely consolidate the lawsuits into a single class action.
According to an October SEC filing, Strategy Executive Chairman and co-founder Michael Saylor remains the largest shareholder with nearly 20 million shares, valued at $7.8 billion based on a recent share price of $389.50. It is not yet known whether any major institutional investors have joined the legal effort.
