CrowdStrike is sued by shareholders over huge software outage

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CrowdStrike is sued by shareholders over huge software outage
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CrowdStrike has been sued by shareholders who said the cybersecurity company defrauded them by concealing how its inadequate software testing could cause the July 19 global outage that crashed more than 8 million computers.

FILE PHOTO: Air Asia passengers queue at counters inside Don Mueang International Airport Terminal 1 amid the global outage that disrupted the airline's operations, in Bangkok, Thailand, on July 19, 2024. REUTERS/Chalinee Thirasupa//File Photo

The complaint cites statements including from a March 5 conference call where Kurtz characterized CrowdStrike's software as"validated, tested and certified." Shareholders often sue companies after unexpected negative news causes stock prices to fall, and CrowdStrike could face more lawsuits.

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