From Nasdaq: 2024-06-03 12:01:49

MicroStrategy stock (NASDAQ:MSTR) rose after founder Michael Saylor agreed to pay $40 million to settle a tax fraud lawsuit in Washington D.C. Saylor, heavily invested in Bitcoin, had a net worth of $4.6 billion as of June 2 and owned a 13% stake in the company.

The lawsuit accused Saylor of evading over $25 million in D.C. income taxes from 2005 to 2021 by claiming residency in lower-tax states, despite living in Washington. D.C. AG charged Saylor and MicroStrategy with tax evasion, claiming the company aided in misrepresenting his residency.

The lawsuit, filed in 2022 by former AG Karl Racine, stemmed from a 2021 whistleblower claim alleging Saylor bragged about evading taxes. Despite the legal issues, analysts maintain a Strong Buy rating on MSTR stock, with a 400% increase in the past year and an average price target of $1,793 implying an 11.4% potential upside.

Read more at Nasdaq: MicroStrategy (NASDAQ:MSTR) Founder Michael Saylor Settles $40M Tax Fraud Lawsuit