The famous American entrepreneur, Michael Saylor is facing legal troubles after a lawsuit was filed against his well-known firm, MicroStrategy, on May 16.
According to the filing, the plaintiff, Anas Hamza, has accused the company of violating federal securities laws by misrepresenting key aspects of its Bitcoin investment strategy. Hamza cited multiple violations of the Securities Exchange Act, alleging that investors were misled by disclosures that omitted or distorted material information.
In the lawsuit, Hamza names Michael J. Saylor, along with Phong Le, the President and Chief Executive Officer, and Andrew Kang, the Chief Financial Officer, as responsible parties.
Hamza is filing the suit on behalf of other shareholders who may have incurred losses due to MicroStrategy’s statements or omissions concerning its Bitcoin holdings and broader corporate strategy.
The lawsuit was announced shortly after MicroStrategy disclosed the purchase of an additional 7,390 Bitcoins for approximately $764.9 million, bringing its total Bitcoin holdings to 576,230 BTC, acquired at a cumulative cost of around $40.18 billion.
