Post
Topic
Board Economics
Merits 3 from 1 user
Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
by
JayJuanGee
on 22/05/2025, 04:03:54 UTC
⭐ Merited by fillippone (3)
[edited out]
A lot of corporations, specially in big tech, abuse their TOS to fill it up with all sort of overreaching rights over their users, and users are right in many instances, the problem is, these corporations use really expensive lawyers, and so people are scared to go on and scale things up even if they know they are right, so in many cases they do nothing, and it may take someone with deep pockets or the state prosecuting them for their wrongdoings. While the state and regulations can sometimes be too much, when it comes these corporations, regulations are necessary. Now when it comes to this class action, it's difficult to say, they may be able to find so some tweets from Saylor and paint if off as overhyping his own stock. While Saylor pumping BTC is legal since it's a commodity, MSTR is it's own stock, but I think anyone reasonable knows that the context of these tweets isn't telling you to literally go all on their stock. They are just promoting their stuck in a positive way just like a car salesman promotes their own cars as safe and reliable. The difference is, a stock may be very volatile and this is advertised, however, if Tesla ships some car that is trash, then they should cover these damages, and if they refuse then they can get sued and will need to reimburse the owner. This is not the case with financial products if the risks are covered, and the risks are well covered on the SEC fillings and so on.

Sure there may be some areas of relation to terms of service, yet the standards with the SEC would have to do with specific kinds of material failure to disclose, and a decent amount of puffery since the implications would be that investors have to figure shit out.. whether or not to invest in MSTR versus some other place to put their money, so any of MSTR's discussions would need to not materially mislead investors, which I have difficult times imagine a class action being successful to win on such claims.. and I cannot see MSTR agreeing to pay in regards to the suit that also costs MSTR time and legal resources to defend (which many corporations are already prepared for various kinds of lawsuits, especially in the context of their having had gone public about 27 years ago (1998, I believe?).