Summary: CrowdStrike is facing a federal class action lawsuit from investors due to a global IT outage that affected millions of Microsoft Windows systems, allegedly caused by deficient controls in their software. The lawsuit claims that the outage led to a significant drop in CrowdStrike’s share price and names CEO George Kurtz and CFO Burt Podbere as defendants.
Threat Actor: CrowdStrike | CrowdStrike
Victim: Investors | Investors
Key Point :
- Investors allege that CrowdStrike’s software, the Falcon platform, was inadequately tested, leading to the outage.
- The outage reportedly cost Delta Air Lines about $500 million due to thousands of canceled flights.
- CrowdStrike has committed to improving its software testing and deployment processes following the incident.
- The company’s share price dropped significantly after the outage, impacting investor confidence.
CrowdStrike is facing a federal class action suit from investors following the global IT outage that disrupted millions of Microsoft Windows systems.
The Plymouth County Retirement Association alleges CrowdStrike maintained deficient controls and did not adequately test its software, despite repeated statements touting the efficacy of the Falcon platform, according to the complaint filed Tuesday in the U.S. District Court for the Western District of Texas.
Investors claimed the share price of the company dropped sharply as a result of the outage. CrowdStrike shares on Thursday opened at $232 a share. CrowdStrike shares closed at $343.05 on July 18, the day before the outage and reached a 52-week high of $398.33 on July 9.
The suit also names CEO George Kurtz and CFO Burt Podbere as defendants. “We believe this case lacks merit and we will vigorously defend the company,” a CrowdStrike spokesperson said in an emailed statement.
CrowdStrike, in a preliminary report, said the July 19 outage was due to an undetected error in a rapid response content update for Windows users.
Kurtz apologized for the outage and the company has since pledged to make major improvements in how it tests and deploys software updates to make sure they are phased to avoid putting so many customers at risk.
Delta Air Lines plans to pursue legal action against CrowdStrike and Microsoft. The company said the outage will cost the airline about $500 million as thousands of flights were canceled.
CrowdStike on Wednesday said 99% of Windows sensors were back up and running, in an update on recovery efforts.
Source: https://www.cybersecuritydive.com/news/crowdstrike-class-action-suit-investors/723053