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CrowdStrike Faces Lawsuit and Accusations Over Software Outage
2024-08-01 14:59:08
Tech
Business

CrowdStrike Faces Lawsuit and Accusations Over Software Outage

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CrowdStrike, a cybersecurity firm, is being sued by shareholders and faces a class action lawsuit for a major software outage that crashed millions of computers, resulting in billions of dollars in losses for companies like Delta Air Lines and the Fortune 500. The outage was caused by faulty software upgrades from CrowdStrike and Microsoft.

CrowdStrike denies the allegations and says it will vigorously defend the lawsuit. Delta Air Lines, one of the companies affected by the outage, has hired an attorney to recoup its losses.

The incident has led to a significant drop in CrowdStrike's stock value. The outage affected 8.5 million Windows computers and disrupted airlines, banks, and hospitals.

The company's CEO testified to Congress about the incident. This event highlights the need for accountability and reliability in software systems, as a single line of code should not be able to cause such widespread disruption.

Related news on that topic:

Delta Air Lines Pursues Compensation From CrowdStrike and ... IT Outage

Delta Air Lines is taking legal action to seek compensation from CrowdStrike and Microsoft following a global IT outage. The disruption, caused by a CrowdStrike program update affecting Microsoft Windows devices, led to flight cancellations, affecting thousands of passengers and costing the airline hundreds of millions of dollars. Delta's move could set a precedent for other companies seeking financial redress for similar incidents. CrowdStrike, while not offering financial help, aims to prevent future recurrences and provide advice. Government authorities are urging transparency, with Delta Air Lines potentially facing costs of up to $500 million due to the tech outage.

Delta Air Lines Seeks Damages Over Software Outage

Delta Air Lines is pursuing damages from CrowdStrike and Microsoft following a software outage that led to 6,000 flight cancellations, resulting in a $500 million loss. Despite hiring lawyer David Boies, recovering compensation may be challenging due to liability-limiting terms. The FTC could impose fines, but individual customers may not receive damages. Delta CEO Ed Bastian aims to protect shareholders, customers, and employees from reputational harm. CrowdStrike faces a lawsuit for a faulty update causing global outages, with potential for more legal actions. The lawsuit alleges false statements, deficient controls, and a bug leading to stock price drop. Delta's legal battle involves various experts and legal challenges that could impact the airline's recovery efforts.

Read 4 more recent news on this topic

The press radar on this topic:

The Street
6. August 2024 um 19:45

What the CrowdStrike outage cost Delta TheStreet Daily Newsletter

Economy
Technology
Finance
Delta Airlines suffered $500 million in losses from a computer meltdown caused by faulty CrowdStrike and Microsoft software upgrades, forcing cancellation of over 6,000 flights; Delta has hired attorney David Boies to recoup losses and paid tens of millions in hotel vouchers; the report comes amid signs of labor market slowdown and the Federal Reserve holding interest rates steady; Delta CEO Ed Bastian is seeking to protect shareholders, customers, and employees from the reputational damage.
Inc.com
1. August 2024 um 08:37

Delta's CEO Says the Biggest IT Outage In History Cost His Airline $500 Million. He'd Like Someone to Pay Up

Economy
Technology
Delta CEO Bastian: $500M IT outage cost, CrowdStrike offers only "free consulting"; Delta cancelled flights, impacting revenue and passenger experience. Airline pursuing accountability via law firm, as $500M loss and reputational damage require response. Outage affected 8.5M Windows PCs, though blame falls on Delta, not Microsoft. "With great power comes great responsibility" - the "Peter Parker rule" applies, as Delta hired lawyer who led Microsoft antitrust case. Analysts estimate $5.5B total..
DER SPIEGEL
1. August 2024 um 08:54

Crowdstrike: Two weeks after the IT disaster, the nightmare is not over - DER SPIEGEL

Technology
Economy
Finance
CrowdStrike, an IT security provider, released a faulty update that caused 8.5 million Windows computers to crash; Delta Air Lines lost $500 million, Lufthansa had a low double-digit million euro damage; the CrowdStrike CEO was summoned to the US Congress, and investors sued the company.
The Guardian
1. August 2024 um 12:24

CrowdStrike accused of defrauding investors in class action lawsuit

Economy
Technology
Finance
CrowdStrike, a cybersecurity firm, faces a class action lawsuit alleging it defrauded investors by misrepresenting its software's validation and testing, resulting in a major outage that cost Delta Air Lines $500 million, the Fortune 500 $5 billion, and prompted CrowdStrike to offer $10 Uber gift vouchers, which were blocked; a CrowdStrike spokesperson said the company will vigorously defend the lawsuit.
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