{"id":6072,"date":"2024-08-01T15:02:57","date_gmt":"2024-08-01T15:02:57","guid":{"rendered":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/08\/01\/crowdstrike-sued-over-global-it-outage\/"},"modified":"2024-08-01T15:02:57","modified_gmt":"2024-08-01T15:02:57","slug":"crowdstrike-sued-over-global-it-outage","status":"publish","type":"post","link":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/08\/01\/crowdstrike-sued-over-global-it-outage\/","title":{"rendered":"CrowdStrike sued over global IT outage"},"content":{"rendered":"<p>The firm at the centre of the global IT outage last month is being sued by some of its shareholders.<\/p>\n<p>Lawyers claim cyber security company CrowdStrike defrauded investors by concealing flaws with its software testing.<\/p>\n<div class=\"sdc-site-outbrain sdc-site-outbrain--AR_6\" aria-hidden=\"true\" data-component-name=\"sdc-site-outbrain\" data-target=\"\" data-widget-mapping=\"\" data-installation-keys=\"\">    <\/div>\n<p>It comes after a <strong>software update sent out by the firm<\/strong> caused more than eight million computers to crash on 19 July.<\/p>\n<p>The meltdown hit thousands of businesses worldwide, disrupting airports, banks, hospitals and <strong>broadcasters<\/strong>.<\/p>\n<p>CrowdStrike boss George Kurtz <strong>apologised to those affected<\/strong> and blamed a &#8220;software bug&#8221;, but admitted it would take &#8220;some time&#8221; to fully fix the problems.<\/p>\n<div class=\"ad ad--teads\">        <\/div>\n<p>The lawsuit, which was filed in Austin, Texas, alleges the firm&#8217;s assurances about its technology were materially false and misleading.<\/p>\n<p>It noted that CrowdStrike&#8217;s share price plummeted 32% in the 12 days following the global outage, wiping out $25bn (\u00a319bn) of its market value.<\/p>\n<p>The legal complaint quotes statements by Mr Kurtz during a conference call in March, in which he described the company&#8217;s software as &#8220;validated, tested and certified&#8221;.<\/p>\n<p>A spokesperson for CrowdStrike, which is based in Texas, said: &#8220;We believe this case lacks merit and we will vigorously defend the company.&#8221;<\/p>\n<p>The lawsuit, led by the Plymouth County Retirement Association in Massachusetts, seeks unspecified damages for those who held shares in the company between 29 November last year and 29 July.<\/p>\n<p>The company could face further lawsuits over the outage.<\/p>\n<p>Delta Air Lines is among those who have said they are considering legal action.<\/p>\n<p>The <strong>carrier<\/strong>&#8216;s chief executive Ed Bastian told CNBC on Wednesday the outage cost his firm around $500m (\u00a3390m), including lost revenue and compensation and hotels for stranded fliers.<\/p>\n<\/p>\n<div>This post appeared first on sky.com<\/div>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The firm at the centre of the global IT outage last month is being sued&hellip;<\/p>\n","protected":false},"author":1,"featured_media":6073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":["post-6072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science"],"_links":{"self":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/6072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/comments?post=6072"}],"version-history":[{"count":0,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/6072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media\/6073"}],"wp:attachment":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media?parent=6072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/categories?post=6072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/tags?post=6072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}