MicroStrategy (MSTR) Investors Alert: Opportunity to Lead Securities Fraud Lawsuit

LOS ANGELES, June 20, 2025 – Glancy Prongay & Murray LLP, a leading national law firm, today announced a significant development for investors who have incurred substantial losses in MicroStrategy Incorporated (NASDAQ: MSTR). Shareholders who suffered aggregate losses of $100,000 or more are strongly encouraged to come forward, as they may have the opportunity to serve as lead plaintiff in a pending securities fraud class action lawsuit against MicroStrategy, also known as "Strategy" or "the Company."

This legal action stems from allegations of securities fraud, which typically involve misleading statements or omissions by a company that artificially inflate its stock price, causing harm to investors when the truth is revealed. For MicroStrategy, a company that has become synonymous with its aggressive Bitcoin acquisition strategy, such allegations carry significant implications for its investor base and market perception.

The Allegations Against MicroStrategy

The lawsuit alleges that MicroStrategy, through its public statements and financial reporting, may have engaged in practices that misled investors regarding its financial health, operational stability, or the true risks associated with its unique corporate strategy. While the specific details of the alleged fraud are under legal review, securities fraud lawsuits often focus on issues such as:

• Misrepresentations of financial performance.
• Failure to disclose material adverse facts.
• Inadequate risk disclosures, particularly concerning its substantial Bitcoin holdings and their volatility.
• Non-compliance with accounting principles or regulatory requirements.

Investors who purchased MSTR shares during the class period and experienced significant losses are urged to contact Glancy Prongay & Murray LLP to discuss their legal options. Becoming a lead plaintiff is a crucial role, as it involves overseeing the litigation and ensuring the interests of all class members are adequately represented.

Market Context and Implications for MSTR

MicroStrategy's stock performance has been heavily influenced by the volatile price movements of Bitcoin, given its corporate strategy to accumulate and hold large quantities of the cryptocurrency. This strategy has led to periods of significant stock appreciation during Bitcoin bull runs but also sharp declines during market corrections. The current legal challenge introduces a new layer of risk and uncertainty for MSTR investors.

Regulatory scrutiny of cryptocurrency-related companies has been increasing globally, and any allegations of securities fraud against a prominent player like MicroStrategy could draw further attention from financial regulators. This lawsuit could potentially impact investor confidence, lead to increased volatility in MSTR's stock, and prompt a re-evaluation of its unique business model by analysts and institutional investors.

What This Means for Investors

For current and prospective investors in MicroStrategy, this lawsuit serves as a critical reminder of the inherent risks associated with investing in companies with unconventional strategies or those operating in highly volatile sectors. While the outcome of the lawsuit is uncertain, the initiation of such legal proceedings often signals potential underlying issues that warrant careful consideration.

Actionable Insights for Investors:

• Review Your Holdings: If you hold MSTR shares and incurred losses of $100,000 or more, it is imperative to assess your eligibility to participate in the lawsuit.
• Understand Lead Plaintiff Role: Consider the responsibilities and potential benefits of serving as a lead plaintiff, which can offer greater control over the litigation process.
• Due Diligence: For all investors, conduct thorough due diligence on MicroStrategy's financial statements, risk disclosures, and corporate governance practices.
• Diversification: Re-evaluate your portfolio's exposure to highly concentrated or volatile assets like MSTR, especially given the added legal uncertainty.
• Stay Informed: Monitor legal developments related to this lawsuit and any further disclosures from MicroStrategy or regulatory bodies.

This lawsuit underscores the importance of transparency and accurate reporting in the financial markets. Investors who believe they have been harmed by alleged fraudulent activities have a right to seek recourse, and class action lawsuits provide a mechanism for collective action against corporate misconduct.

Glancy Prongay & Murray LLP is actively investigating these claims and encourages affected investors to reach out for a confidential consultation. The deadline to apply to be lead plaintiff is typically set by the court, and investors should act promptly to protect their rights.