By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
    Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
    May 14, 2025
    Cassandra Ventura testifies, tells jury freak offs became a job
    Cassandra Ventura testifies, tells jury freak offs became a job
    May 13, 2025
    White South Africans arrive in US after Trump administration granted them refugee status | World News
    White South Africans arrive in US after Trump administration granted them refugee status | World News
    May 13, 2025
    Trump’s Mideast Wish List: + Trillion in Investments – and Some Diplomacy Too
    Trump’s Mideast Wish List: $1+ Trillion in Investments – and Some Diplomacy Too
    May 13, 2025
    Djokovic-Murray coaching partnership ends before French Open | Tennis News
    Djokovic-Murray coaching partnership ends before French Open | Tennis News
    May 13, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
    Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
    May 14, 2025
    BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
    BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
    May 14, 2025
    Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here
    Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here
    May 14, 2025
    How to Use tsUSDe on TON for Passive Dollar Yield in 2025
    How to Use tsUSDe on TON for Passive Dollar Yield in 2025
    May 13, 2025
    South Korea’s Democratic Party sets up ‘Digital Asset Committee’
    South Korea’s Democratic Party sets up ‘Digital Asset Committee’
    May 13, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: CrowdStrike shareholders sue, alleging false security claims
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Technology > CrowdStrike shareholders sue, alleging false security claims
CrowdStrike shareholders sue, alleging false security claims
Technology

CrowdStrike shareholders sue, alleging false security claims

Published August 1, 2024
Share
5 Min Read
SHARE

CrowdStrike shareholders have filed a lawsuit in the United States in which they claim the cyber security firm made materially false and misleading representations about the integrity of its technology. They also claim that CrowdStrike defrauded them through covering up that inadequate attention to software testing could cause the 19 July incident that saw millions of computers crash around the world.

Based on the currently known facts of the investigation, the outage was caused by a faulty update to the CrowdStrike Falcon managed detection and response (MDR) sensor which was cleared for launch by a bugged automatic content validator. When it hit susceptible Windows systems, it caused an out-of-bounds memory condition leading to a fatal crash.

As a result of the crashes affecting more than eight million computers, organisations in diverse sectors including aviation, education, financial services, healthcare and retail found their operations disrupted, with airlines – particularly Delta Air Lines in the US – very badly affected.

Insurance firm Parametrix estimates Fortune 500 companies alone are set to lose over $5.4bn, and the incident may cost over $15bn when others are taken into account.

In the filing, made at the US District Court for the Western District of Texas in Austin, the Massachusetts-based pension and benefits provider Plymouth County Retirement Association, represented by New York law firm Labaton Keller Sucharow, accuses the defendants, which include CrowdStrike CEO George Kurtz and others, of repeatedly touting the efficacy of its Falcon platform while assuring investors that it was fully “validated, tested and certified” on a March 2024 earnings call.

The fund’s complaint alleges these statements were false and misleading because they failed to disclose that CrowdStrike had instituted “deficient controls” in the Falcon update procedure and was not properly testing them prior to rolling them out.

The lawsuit further contends that this “inadequate” software testing caused a substantial risk that a Falcon update could cause a serious outage of the type seen in July, and that these outages could, and did, create “substantial reputational harm and legal risk”.

Ultimately, the claimant says, this led to CrowdStrike stock – which has taken a hammering on global markets – to trade at “artificially high prices”.

In a statement to media, a CrowdStrike spokesperson said: “We believe the case lacks merit and will vigorously defend the company.”

Delta boss: We have no choice but to sue

Meanwhile, others, including Delta, are also mounting legal cases against CrowdStrike in the wake of the incident. Delta has hired star lawyer David Boies, who has previously fought against Microsoft in a 1990s anti-trust case, and served as lead counsel for former vice-president Al Gore in challenges to the 2000 Florida vote count.

Speaking to US network CNBC on 31 July, Delta CEO Ed Bastian said all its systems were now working, but that the experience had been “terrible” and apologised again to affected passengers, who included American athletes headed to the Paris Olympics, and staff.

“We are heavy with both [Microsoft and CrowdStrike]. We are by far the heaviest in the industry with both and so we got hit the hardest in terms of the recovery capability,” said Bastian.

Bastian said that as both CrowdStrike and Microsoft compete in the cyber security arena, they don’t partner together as effectively as joint customers might hope, and that the incident had been a call to organisations to hold technology firms’ feet to the fire in terms of responsible cooperation.

“This cost us a half a billion dollars,” he said, adding that Delta had “no choice” but to sue, citing significant expenditure every day for almost a week on compensating and providing temporary hotel accommodation for thousands of stranded passengers.

“If you’re going to be having priority access to the Delta ecosystem in terms of technology, you’ve got to test the stuff. You can’t come into a mission-critical 24/7 operation and tell us we have a bug, it doesn’t work,” he said.

#CrowdStrike #shareholders #sue #alleging #false #security #claims

TAGGED:allegingclaimsCrowdStrikefalsesecurityShareholderssue
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Russia, U.S. prisoner swap live updates: Evan Gershkovich, other Americans to be freed, Turkish presidency says Russia, U.S. prisoner swap live updates: Evan Gershkovich, other Americans to be freed, Turkish presidency says
Next Article M2 crypto exchange to allow UAE residents to trade crypto using bank accounts M2 crypto exchange to allow UAE residents to trade crypto using bank accounts
- Advertisement -

Latest Post

Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
Cryptocurrency
BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
Cryptocurrency
Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
World News
Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here
Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here
Cryptocurrency
Cassandra Ventura testifies, tells jury freak offs became a job
Cassandra Ventura testifies, tells jury freak offs became a job
World News
How to Use tsUSDe on TON for Passive Dollar Yield in 2025
How to Use tsUSDe on TON for Passive Dollar Yield in 2025
Cryptocurrency
- Advertisement -

You Might Also Like

Polestar 4: First car without a rear window to make its way on to British roads | UK News
Technology

Polestar 4: First car without a rear window to make its way on to British roads | UK News

February 1, 2024
Hottest July on Record Kills Hundreds of Cows
Technology

Hottest July on Record Kills Hundreds of Cows

August 9, 2023
US border agents must get warrant before cell phone searches, federal court rules
Technology

US border agents must get warrant before cell phone searches, federal court rules

July 29, 2024
Real-Time Frame Generation Features : amd fluid motion frames
Technology

Real-Time Frame Generation Features : amd fluid motion frames

January 26, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?