The Bitcoin-centric investment company strategy (formerly the Micro Strategy) faces at least five separate class action lawsuits over $6 billion in unrealized Bitcoin losses, claiming it has issued misleading statements to investors about the risks and profitability of Bitcoin.
The first lawsuit was filed by Pomerantz LLP on May 16th. However, four other law firms, Gross law firms, Bronstein Gewirtz & Grossman, Kessler Topaz Meltzer & Check, and Levi & Korsinsky, chose to file similar lawsuits with similar content rather than taking part in the lawsuit.
That’s not uncommon, legal experts say. “In Class Action Securities litigation, law firms compete for the role of lead lawyers because the role can be very advantageous and cost tens of millions of dollars.
Each lawsuit alleges that the company made a “substantially false and misleading” statement regarding the profitability and risks of Bitcoin investments from April 30, 2024 to April 4, 2025.
Professor Anne Lipton of the University of Colorado Law School similarly emphasized the importance of the position of the key plaintiffs, saying, “The plaintiff manages the case and decides on a rank lawyer.
Law firms seeking to move forward in the litigation process have issued public press releases inviting more investors to litigate. These statements often draw attention to the July 15 deadline when the court selects the main plaintiff and other cases are integrated under its umbrella.
The main goal of a law firm is to include the most damaged investors among the plaintiffs. The Securities Private Litigation Reform Act of 1995 requires investors who are the most harmful and volunteer to take on the role of the main plaintiff.
Lipton sums it up like this: “Investors with more losses will monitor cases and monitor lawyers more carefully, which is why institutional investors are generally preferred.”
*This is not investment advice.
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