CrowdStrike sued by shareholders over global outage

CrowdStrike is facing a lawsuit from its shareholders following a significant global IT outage caused by a faulty software update that affected over 8.5 million Microsoft Windows computers. The lawsuit, filed in a federal court in Austin, Texas, claims that the company made "false and misleading" statements regarding its software testing processes, leading to a 32% drop in its share price and a loss of approximately $25 billion in market value within 12 days of the incident. CrowdStrike has denied these allegations and stated that it will vigorously defend itself against the class action lawsuit. The company reported that the outage, which began on July 19, was resolved by July 29, and attributed the issue to a bug in a system meant to ensure proper software updates. The lawsuit seeks unspecified compensation for investors who held CrowdStrike shares during the affected period. Additionally, Delta Air Lines has reported a $500 million loss due to the disruption caused by the outage and is preparing to seek compensation from CrowdStrike. The incident has raised concerns about the adequacy of software testing and the potential for similar issues in the future, prompting CrowdStrike to commit to improving its testing and oversight processes.