Plaintiffs allege CrowdStrike made misleading statements to enhance stock prices.
On July 30, a lawsuit was filed against cybersecurity company CrowdStrike following a global outage on July 19 due to a faulty software update. “CrowdStrike's stock price has tumbled almost 38 percent from $343 on July 18 to $214, causing significant financial losses to investors,” Bleeping Computer Bill Toulas wrote.
The Plymouth County Retirement Association, a pension fund, brought the lawsuit. The complaint alleges that the company made “false and misleading statements” about software testing to enhance stock prices artificially. “Defendants repeatedly touted the efficacy of the Falcon platform while assuring investors that CrowdStrike’s technology was ‘validated, tested, and certified,’” the lawsuit stated.
PC Magazine’s Michael Kan reported that before the outage, CrowdStrike’s stock had been trading at a historic high and has since fallen.
“We believe this case lacks merit, and we will vigorously defend the company,” a CrowdStrike spokesperson said in a statement.
Pietje Kobus has an international background and experience in content management and editing. She studied journalism in the Netherlands and Communications and Creative Nonfiction in the U.S. Pietje joined Healthcare Innovation in January 2024.
