NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is investigating potential claims against MicroStrategy Incorporated (“MicroStrategy” or the “Company”) (NASDAQ: MSTR). This investigation concerns whether MicroStrategy has violated federal securities laws and/or engaged in other unlawful business practices.
On January 29, 2019, MicroStrategy disclosed material weaknesses in its internal controls over financial reporting. Specifically, MicroStrategy’s auditor, KPMG, found that ineffective process controls in the implementation of new IT systems rendered MicroStrategy susceptible to being unable to detect or correct material misstatements in its financial reports. The Company downplayed the deficiencies, assuring investors that the Company had made no misstatements in its financial statements and that the material weaknesses would be remediated. Nonetheless, on this news, the price of MicroStategy’s shares fell $10.90, or 7.9%, to close at $127.37 on January 30, 2019.
Then, on July 8, 2019, the Company announced the resignations of two senior executives, Kevin Norlin, Senior Executive Vice President of Worldwide Sales, and Stephen H. Holdridge, Senior Executive Vice President of Worldwide Services. The Company further revealed that its current CFO, Phong Le, had been reassigned to head of sales and that the Company would begin a search for a new CFO. On this news, the price of MicroStrategy’s shares fell $14.31, or 10.2%, to close at $125.93 on July 8, 2019.
If you acquired MicroStrategy securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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