CrowdStrike Faces Lawsuit from Shareholders Over Software Update Fiasco
Fallout Extends Beyond Operational Chaos
Shareholders Hold Company Accountable for Misleading Statements
In the wake of a faulty software update that caused widespread disruptions, CrowdStrike is facing a lawsuit from shareholders who allege that the cybersecurity firm defrauded them.
The outage, which occurred on Monday, was quickly linked to a software update issued by CrowdStrike on Microsoft Windows. The update caused computers to freeze and restart, forcing Delta Air Lines to temporarily ground its flights.
The shareholders' lawsuit, filed in federal court in California, alleges that CrowdStrike had "hyped its product" and failed to disclose the risks associated with the software update.
The lawsuit is the latest in a series of setbacks for CrowdStrike, which has been plagued by operational problems in recent months. In June, the company was forced to cancel its annual conference due to a cyberattack.
CrowdStrike has not yet commented on the lawsuit.
Comments