"The suit, filed on behalf of CrowdStrike investors in August 2024, accused the defendants, who included the company's founder and CEO George Kurtz of making false and misleading statements over the efficacy of the Falcon platform at the centre of the outage. It also alleged failings over software testing and quality assurance and claimed that CrowdStrike was seeking to maximise its profit by rushing untested updates."
"Rejecting other arguments, Pitman also said that corporate mismanagement did not, standing alone, give rise to a multibillion-dollar claim. "We appreciate the Court's thoughtful consideration and decision to dismiss this case," said CrowdStrike chief legal officer Cathleen Anderson in a brief statement. The Reuters news agency earlier reported that the office of New York State comptroller Thomas DiNapoli, who led the lawsuit, is reviewing options following the decision."
On 19 July 2024 a faulty sensor update caused a global outage that crashed Windows PCs and generated widespread disruption and billions in losses. Shareholders filed a class action in August 2024 alleging CrowdStrike and CEO George Kurtz made false and misleading statements about the Falcon platform, and alleging inadequate software testing, quality assurance, and rushed, profit-driven updates. U.S. District Judge Robert Pitman in Austin dismissed the case in its entirety, finding plaintiffs failed to plausibly allege motive or intent to commit securities fraud and that statements were not false when read in context. The court held corporate mismanagement alone does not support multibillion-dollar securities claims. CrowdStrike issued a brief statement appreciating the dismissal, and the New York State comptroller's office is reviewing options. Pitman previously dismissed a separate related lawsuit in June.
Read at ComputerWeekly.com
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