SAN FRANCISCO, CA / ACCESSWIRE / September 26, 2024 / Cybersecurity firm CrowdStrike faced intense scrutiny on Capitol Hill on September 24 as lawmakers demanded answers for a catastrophic software update that crippled essential services across the nation.
Hagens Berman urges CrowdStrike Holdings, Inc. (NASDAQ:CRWD) investors who suffered substantial losses to submit your losses now.
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House Homeland Security Committee Chairman Mark Green (R-Tenn.) castigated the company's CEO, George Kurtz, for evading direct testimony and dispatching a subordinate to address the crisis. "This was a systemic failure with far-reaching consequences," Green declared, "and we cannot let it happen again."
Adam Meyers, CrowdStrike's senior vice president, offered a mea culpa for the incident, attributing the widespread outage to a faulty configuration update that caused a "Blue Screen of Death" on millions of Windows devices. However, his apology fell short of assuaging lawmakers' concerns.
Congress' interrogation of CrowdStrike comes on the heels of a September 12 report by SEMAFOR, wherein former CrowdStrike employees painted a picture of a company culture that prioritized speed over quality. Multiple sources described a workplace where mistakes were commonplace, and workers were often undertrained. One former manager even recalled warnings about the potential for catastrophic failures if the company continued to release untested products
Securities Class Action Against CrowdStrike Holdings, Inc. (CRWD):
The outage has also sparked litigation against CrowdStrike, with plaintiffs alleging that the company misled investors about the reliability of its flagship Falcon Sensor product. The complaint accuses CrowdStrike of failing to disclose significant risks associated with its update process and of downplaying the potential consequences of a major outage.
The truth began to emerge on July 19, 2024, when CrowdStrike issued an automatic update for its flagship Falcon Sensor security product which contained a bug and caused a massive overnight outage that affected 8.5 million Windows computers around the world, disrupting businesses, airports, train stations, banks, broadcasters, and the healthcare sector. Many affected machines were unable to restart, instead showing a blue error screen sometimes called "the blue screen of death."
Then, on July 29, 2024, news outlets reported that one of CrowdStrike's customers (Delta Airlines) which suffered more than 6,000 flight cancellations hired a prominent attorney to seek damages caused by the faulty update.
These events have driven the price of CrowdStrike shares down nearly 16% since the outage.
If you invested in CrowdStrike and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
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Whistleblowers: Persons with non-public information regarding CrowdStrike should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Contact:
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SOURCE: Hagens Berman Sobol Shapiro LLP