Bitcoin Giant Strategy Dodges Another Lawsuit claiming accounting fraud

Another shareholder lawsuit claiming dangerous accounting practices Bitcoin Financial major strategy Court documents show.

Documents filed Wednesday show the discarded case filed in June by shareholders Abhey Parmar and Zhenqiu Chen, alleging violations of fiduciary duties, unjust enrichment, abuse of management and serious mismanagement of the company.

The termination comes weeks after another class action lawsuit accusing a shareholder of misleading how the new accounting rules will affect its profitability. Discard. The lawsuit filed in May was similar to that of June 1, which was dismissed Wednesday.

This year, many law firms and shareholders filed lawsuits against the company, alleging securities fraud against misleading Bitcoin investment statements.

Experts I said Decryption It was not uncommon for law firms to file the same lawsuit against a company because they fought to become lead lawyers in a consolidated case.

Strategy – Previous Micro Strategy – Bitcoin’s largest corporate holder in the world, with $638,460 worth of digital coins worth $72.5 billion. Today’s price.

The company mainly sold data analytics software, but now it purchases and holds Bitcoin, and investors are exposed to cryptocurrency by purchasing shares in NASDAQ registered stocks (MSTRs), which are called Bitcoin financing companies.

The company’s co-founder, Michael Saylor, was turned on for Bitcoin in 2020, and bought it and claimed it was the best way to save value and save shareholders’ money.

Strategic stock has since risen sharply. It was trading for $14 a day for the company I bought it first Bitcoin was in August 2020 and is currently trading at $362. This is an increase of 2,160%.

The strategy has encountered trouble with regulators in the past. In 2000, then Strategic CEO Saylor, co-founder and Chief Operating Officer Sanjeev Bansal, and former Chief Financial Officer Mark Lynch I’m calmed down In the case of the SEC, we will not acknowledge or reject any charges of exaggerating the company’s revenue and revenue.

The three paid $10 million in disgust and a million in penalty.