Saylor's Strategy now has a law firm, a lawsuit threat, and an $86 stock — what could go wrong? 📉

Rosen Law Firm announced an investigation into Michael Saylor's Strategy over potential securities claims on behalf of shareholders, according to a press release issued by the firm. The probe centers on allegations that the company may have issued materially misleading business information to the investing public, and Rosen said it is preparing a class action aimed at recovering investor losses for investors in Strategy securities. The firm added that shareholders may be entitled to compensation without out-of-pocket fees or costs through a contingency fee arrangement.

The investigation lands as MSTR extends its slide to a new low of around $86 under heavy selling pressure, coinciding with Bitcoin's drop to fresh yearly lows. The selloff has put a renewed spotlight on Strategy's identity as the largest publicly traded corporate holder of $BTC, with its share price historically moving in close sympathy with Bitcoin's price action.

The legal move comes roughly a week after Bitcoin critic Peter Schiff publicly floated an investor lawsuit against the BTC treasury company and its executive chairman. Schiff argued that investors who purchased the STRC preferred stock could have an "ironclad lawsuit" if they bought the security based on Saylor's promotion of the company and its holdings. Strategy has not been charged with wrongdoing, and the Rosen Law Firm announcement sets out an investigation rather than a filed complaint.

Rosen Law Firm stated that it is preparing a class action to recover investor losses tied to Strategy securities, and it urged shareholders who purchased the company's securities to consider their legal options. The firm described the potential claims as arising from materially misleading business information, without specifying a date range or dollar amount of alleged losses in the release. Strategy did not immediately issue a public response to the investigation announcement.