The attorney general’s office stated on Monday that Michael Saylor, the founder and executive chairman of MicroStrategy (MSTR), had reached a $40 million settlement with the District of Columbia, in what they described as the largest income tax fraud recovery in the district’s history. In August 2022, the District of Columbia filed a lawsuit against Saylor and his business, claiming that for the more than ten years he had been there, the executive had not paid any income taxes in the district.
It added that MicroStrategy had planned to assist him in doing so. Saylor allegedly avoided paying the district more than $25 million in taxes by claiming to reside somewhere else, according to the attorney general’s office.
The news was initially reported by The New York Times. Saylor told the New York Times, “Florida remains my home today, and I continue to dispute the allegation that I was ever a resident of the District of Columbia.” “In order to spare friends, family, and myself from the ongoing burdens of the litigation, I have agreed to settle this matter.” Pre-market trading saw a 3% increase in shares of the software company situated in Tysons Corner, Virginia.