Strategy officials are accused of “violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.” The filing states:“The [suit claims] that the named defendants made false and/or misleading statements with respect to and/or failed to disclose information with respect to the anticipated profitability of our Bitcoin-focused investment strategy and treasury operations, and the various risks associated with bitcoin’s volatility.“Related: Strategy will beat all public equities with Bitcoin, analyst saysStrategy keeps inspiring othersStrategy’s Bitcoin treasury strategy has inspired multiple other companies to follow in its footsteps.
Source: CoinMarketCapRelated: Jim Chanos takes opposing bets on Bitcoin and StrategyStrategy hit with a lawsuitAccording to a May 19 filing with the US Securities and Exchange Commission, “a purported class action lawsuit was filed in the US District Court for the Eastern District of Virginia against” the company’s executives, including executive chairman Michael Saylor, its president and CEO Phong Le and executive vice president and chief financial officer Andrew Kang.
Last week, shares of luxury watchmaker Top Win surged more than 60% in premarket trading after the company said it would adopt a Bitcoin accumulation strategy and had changed its name to AsiaStrategy.
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Author / Journalist: Cointelegraph by Adrian Zmudzinski
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