Strategy lawsuit dismissed with prejudice ends the class action but leaves investor scrutiny on Bitcoin accounting under FASB 2023-08 intact; the company reported a $4.22B Q1 loss and still holds 632,457 BTC, keeping disclosure questions open.
Case closed with prejudice, blocking re-filing by same plaintiffs
New FASB crypto accounting rules produced a $4.22B Q1 loss and renewed disclosure scrutiny
Strategy retains 632,457 BTC (~$68.32B), maintaining investor focus on reporting practices
Strategy lawsuit dismissed with prejudice: disclosure concerns over FASB crypto accounting remain—read key takeaways and next steps now.
Strategy lawsuit dismissed with prejudice ending claims though shareholder scrutiny on Bitcoin accounting continues.
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Investors have dropped their class action lawsuit against Strategy, closing the case with prejudice. The decision ends months of litigation but still leaves open the possibility of separate shareholder actions.
The Strategy lawsuit was voluntarily dismissed with prejudice in federal court, which prevents the same plaintiffs from re-filing the identical claims. The dismissal does not bar other shareholders from bringing separate suits, and the company’s accounting disclosures remain under investor review.
The suit was filed in May 2025 in the U.S. District Court for the Eastern District of Virginia. Plaintiffs were represented by the law firm Pomerantz LLP and named Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang as defendants. Court filings on August 28 confirm the voluntary dismissal; reporting on the filing appeared publicly on August 29 in major financial outlets (plain text reference).
Strategy adopted FASB Accounting Standards Update No. 2023-08, which requires companies to record digital assets at fair value each quarter and recognize both gains and losses in earnings. Using this treatment, Strategy reported a $4.22 billion net loss in Q1 2025, which plaintiffs argued was not clearly disclosed in prior communications.
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Source: https://en.coinotag.com/strategy-lawsuit-dismissed-with-prejudice-bitcoin-accounting-scrutiny-could-continue/