A D.C. court denied a motion to dismiss claims that Michael Saylor failed to pay personal income taxes, with a status conference on the matter scheduled for March.
The Office of the Attorney General in Washington, D.C., is pressing ahead with a lawsuit against Michael Seller, director of MicroStrategy, a corporate competitive intelligence firm, in connection with tax evasion.
According to a filing with the Securities and Exchange Commission on February 28, the MicroStrategy said the court did not dismiss the complaint against Sylar that the company was unable to "pay personal tax, loan interest and penalties to be charged" after a resolution in October 2022. However, the court granted a resolution dismissing the charge that Sylar, who acted together with MicroStrategy, violated Washington, D.C.'s false tax returns.
In August 2022, former Washington Attorney General Metty Lemine announced a lawsuit against Sylar's micro-development strategy company, accusing the founder of "never paying corporate income tax in Washington" and "colluding" to help him evade taxes. At the time, the government stated that Sylar's income during his settlement in Washington should be taxed in excess of $25 million, but the total penalty for the former CEO and MicroStrategy would be more than $100m.
Lemine left the attorney general's office in January after announcing that it would not be easy to find a second term. A "status meeting" on the lawsuit will be held on March 10, according to MicroStrategy filings.
"the final outcome of this matter is uncertain," the document said.
According to the attorney general's civil indictment, MicroStrategy has "details" about where Sylar lives in Washington, but the company works with the former chief executive to "help with its own tax evasion" rather than reporting to the government. Sylar resigned as CEO of MicroStrategy in August 2022 and was replaced by Fang Le, the then boss of the company.