09:01 AM EDT, 06/03/2024 (MT Newswires) -- MicroStrategy ( MSTR ) and its co-founder and chairman Michael Saylor agreed to pay $40 million to settle a tax fraud lawsuit brought by the Washington D.C. Attorney General, multiple media outlets reported Monday.

The lawsuit alleged that Saylor knowingly evaded more than $25 million in income taxes by claiming to be a resident of lower tax states like Virginia and Florida despite living in the District for more than a decade, according to a CNBC report.

MicroStrategy ( MSTR ) and Saylor denied the allegations, according to the reports.

The D.C. Attorney General's office and MicroStrategy ( MSTR ) did not immediately respond to MT Newswires' requests for comment.

MicroStrategy ( MSTR ) shares rose by more than 4% in premarket trading.

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