Class Action Lawsuit Targets MicroStrategy Executives

A lawsuit was recently filed in the U.S. District Court for the Eastern District of Virginia, directly targeting the company’s leadership. The allegations include executive chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang.

The lawsuit cites violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5, claiming that the defendants made false or misleading statements regarding the profitability of the company’s Bitcoin-focused investment strategy, and failed to disclose the risks associated with Bitcoin’s high volatility.

This development highlights the increasing importance of transparency in corporate crypto strategies and shows that companies must be even more diligent in their communications with investors.

Corporate Bitcoin Strategies Continue to Expand

Despite the legal issues, MicroStrategy’s long-standing Bitcoin accumulation strategy continues to inspire other companies. Just last week, luxury watchmaker Top Win announced it would adopt a Bitcoin-focused approach. Following the announcement, its stock surged more than 60%, and the company rebranded itself as AsiaStrategy.

AsiaStrategy will partner with Sora Ventures to implement its plan. Sora Ventures had previously worked with Metaplanet in 2024 to help establish Japan’s first corporate Bitcoin treasury. Today, Metaplanet holds more Bitcoin than the government of El Salvador.

In addition, a Bahrain-based publicly listed catering company with a $24.2 million market cap has also adopted a Bitcoin treasury strategy in collaboration with investment firm 10X Capital.

Investment Strategies and the Regulation Balance

The lawsuit against MicroStrategy makes it clear that Bitcoin investments involve not only financial opportunities but also serious legal responsibilities. For institutional players, crypto investment is no longer just about gains—it now requires a balance between regulatory compliance and long-term strategic planning.

As the regulatory landscape evolves, companies following similar strategies will likely need to take clearer positions with both regulators and shareholders.

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The post MicroStrategy Faces Class Action Crisis! Company Takes Case! appeared first on Coin Engineer.

Bank of America and Webull Decisions Increased Selling Pressure

In a regulatory filing dated March 17, Bakkt disclosed that two key clients would not renew their commercial agreements. Bank of America will terminate its existing agreement on April 22, while the brokerage platform Webull will end its contract on June 14.

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According to the filing, Bank of America accounted for 17% of Bakkt’s loyalty services revenue for the nine months ending September 30, 2024. Webull contributed 74% of the company’s crypto services revenue during the same period.

Shares Crash to New Lows!

Following this development, Bakkt (BKKT) shares dropped 27.28% on March 18, closing at $9.33. In after-hours trading, the shares fell an additional 2.25%, reaching $9.12.

Bakkt’s stock price has plummeted more than 96% from its all-time high of $1,063, recorded in October 2021.

Bakkt has postponed its previously announced earnings conference call twice. The latest rescheduling sets the call for March 19. These delays have added further uncertainty for investors.

Class Action Lawsuit on the Horizon!

The Law Offices of Howard G. Smith announced a potential class action lawsuit against Bakkt following the termination of agreements with Bank of America and Webull. The statement claims that the canceled agreements and the delayed earnings call led to a sharp decline in Bakkt’s stock price, “thereby injuring investors.”

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The post Bakkt Shares Experienced a Huge Drop! appeared first on Coin Engineer.

Court Ruling and Legal Process On December 11, the Supreme Court issued a brief order, rejecting Nvidia’s appeal without providing a reason. This decision upheld the Ninth Circuit’s ruling, which reversed a lower court decision from March 2021 that had initially dismissed the case.

Nvidia was aiming to overturn the Ninth Circuit Court of Appeals ruling from August 2023, which revived a lawsuit filed by Nvidia shareholders in 2018. The lawsuit claims that Nvidia hid over $1 billion in GPU sales to crypto miners and that CEO Jensen Huang downplayed the volume of these sales.

A spokesperson for Nvidia told:  “We would have preferred a decision affirming the trial court’s dismissal of the case, but we are fully prepared to continue our defense. Consistent and predictable standards in securities litigation are essential to protecting shareholders and ensuring a strong economy, and we remain committed to supporting them.”

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Shareholder Claims and Evidence The lawsuit argues that a significant portion of Nvidia’s GPU sales was driven by sales to crypto miners. It points to the decline in sales at the end of 2018, when the crypto market collapsed, causing Nvidia’s stock price to drop nearly 30% in just two days.

In October, the Department of Justice and the Securities and Exchange Commission (SEC) supported the case, stating that Nvidia’s argument was based on false information. The agencies highlighted the shareholders’ case, which includes evidence such as statements from former Nvidia executives and a Bank of Canada report alleging that Nvidia understated its cryptocurrency revenue by $1.35 billion.

Nvidia’s Previous SEC Payment In 2022, Nvidia paid $5.5 million to the SEC to settle charges related to its insufficient disclosure of the impact of crypto mining on its gaming business. The company neither admitted nor denied the SEC’s findings, but this payment raised concerns about Nvidia’s past transparency issues.

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The post Nvidia’s Crypto Mining Lawsuit Rekindled! appeared first on Coin Engineer.

The company agreed to pay $4 million to settle the lawsuit, which was filed by plaintiff Luis Friel. Friel alleged that Dapper Labs sold unregistered securities by offering NBA Top Shot Moments NFTs to the public.

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Dapper Labs denies any wrongdoing and maintains that its NFTs are not securities. The company said in a statement that the settlement “does not constitute an admission of any liability or wrongdoing by Dapper Labs.”

The settlement is a significant development for the NFT industry. It is the first major class-action lawsuit alleging that NFTs are securities to be settled. The outcome of the case could have implications for other NFT companies.

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