SAN FRANCISCO, July 12, 2019 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP, with nine offices in eight cities around the country and eighty attorneys, alerts investors in MicroStrategy Incorporated (NASDAQ: MSTR) to the Firm's investigation of possible disclosure violations.
If you purchased or otherwise acquired MicroStrategy securities before July 8, 2019 and suffered losses or have information that may assist the firm's investigation contact Hagens Berman:
or contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing
The investigation centers on MicroStrategy's financial reporting. On January 29, 2019, the Company disclosed material weaknesses in its internal controls over financial reporting. Particularly, 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, however, downplayed the deficiencies, assuring investors that the Company had made no misstatements in its financial statements and that the material weaknesses would be remediated.
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.
This news drove the price of MicroStrategy sharply lower on July 8, 2019.
"We're focused on investors' losses and whether MicroStrategy may have misled investors regarding its financial results and internal controls over financial reporting," said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding MicroStrategy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email MSTR@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 510-725-3000
SOURCE Hagens Berman Sobol Shapiro LLP