SAN FRANCISCO, Aug. 08, 2019 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP reminds investors in MicroStrategy Incorporated (MSTR) of the Firm’s ongoing 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 MicoStrategy 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.
On July 8, 2019, the Company announced two senior executives (Kevin Norlin, Senior Executive Vice President of Worldwide Sales, and Stephen H. Holdridge, Senior Executive Vice President of Worldwide Services) resigned.
This news drove the price of MicroStrategy shares sharply lower on July 8, 2019.
On July 30, 2019, the Company announced 2Q 2019 financial results, including revenue of $117.7 million, down 2.4% year over year and about $2.9 million below the average analyst estimate.
“We’re focused on investors’ losses, whether MicroStrategy may have misled investors regarding its financial results and internal controls over financial reporting, and reasons for the domain sale,” 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.
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Reed Kathrein, 510-725-3000