MicroStrategy Founder Michael Saylor Agrees to $40M Settlement in Tax Evasion Lawsuit
Summary:
Michael Saylor, the founder of tech firm MicroStrategy, has agreed to a $40 million settlement to resolve a lawsuit accusing him of tax evasion. The lawsuit, which marked the first under the District of Columbia's amended False Claims Act, alleged that Saylor hadn't paid income taxes during a decade of residence in the district. Following the suit, Saylor stepped down as CEO and assumed the role of executive chairman.
A $40 million settlement has been agreed upon to resolve a lawsuit accusing Michael Saylor, the founder of tech company MicroStrategy and a leading Bitcoin supporter, of tax evasion. This news was first reported by the New York Times on June 3, stating that the settlement was reached between Saylor, his firm, and the attorney general of the District of Columbia. The settlement was touted by local authorities as the district's "largest-ever recovery from income tax fraud." Notably, this case also marked the inaugural lawsuit under the updated False Claims Act in the district, incentivizing whistle-blowers to alert authorities about residents allegedly concealing their residence details to evade taxes. MicroStrategy and Saylor were sued by the District of Columbia in August 2022, based on claims that Saylor had not paid income taxes in the district for at least a decade while living there. Allegedly, the company assisted Saylor in circumventing over $25 million in DC income taxes. Initially, experts suggested that Saylor's penalties could amount to as much as $75 million. The tax fraud lawsuit resulted in Saylor stepping down from his position as CEO of MicroStrategy in August 2022, a position he held for 33 years since the company's inception. Immediately after his resignation, he took on the role of executive chairman, while maintaining his duties as chairman of the board. As the situation continues to unfold, more details will be reported.
Published At
6/3/2024 3:28:45 PM
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