CrowdStrike Investors Urged to Contact Faruqi & Faruqi Following Major Outages
Faruqi & Faruqi, LLP, a leading national securities law firm, is currently investigating potential claims against CrowdStrike Holdings, Inc. (CRWD). The firm is reminding investors of the September 30, 2024 deadline to seek the role of lead plaintiff in a federal securities class action filed against the company.
The investigation focuses on allegations that CrowdStrike and its executives misled investors about the company’s software updates, particularly regarding the Falcon system. The complaint alleges that CrowdStrike failed to adequately test updates before deploying them, leading to significant outages affecting millions of users, including financial institutions, government agencies, and corporations. These outages caused substantial reputational harm and legal risk for CrowdStrike.
Specifically, the complaint alleges that CrowdStrike and its executives:
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Failed to disclose deficient controls in their software update procedures.
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Did not properly test Falcon updates before releasing them to customers.
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Hid the substantial risk of widespread outages due to inadequate software testing.
These alleged omissions resulted in the company’s stock trading at inflated prices during the Class Period (November 29, 2023, to July 29, 2024).
Timeline of Events
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July 19, 2024:
Investors became aware of issues with CrowdStrike’s technology when a single update caused outages for millions of Microsoft Windows users globally. CrowdStrike acknowledged that the outages left users vulnerable to hacking threats. CrowdStrike’s stock price dropped by 11% on this news.*
July 22, 2024:
The fallout from the outages intensified when Congress called on CrowdStrike executives to testify regarding the crisis. Additionally, analysts downgraded the company’s stock rating. The stock price fell by another 13.5% on this news.*
July 29, 2024:
Further news emerged that Delta Air Lines had hired a prominent attorney to pursue damages from CrowdStrike following the outages. CrowdStrike’s stock price dropped by 10% on this news.Investor Action
Investors who suffered losses exceeding $100,000 in CrowdStrike stock between November 29, 2023, and July 29, 2024, are encouraged to contact Faruqi & Faruqi to discuss their legal rights and options. The firm’s partner, Josh Wilson, can be reached directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Investors can also find more information about the CrowdStrike class action at www.faruqilaw.com/CRWD.
Lead Plaintiff
The lead plaintiff is the investor with the largest financial interest in the case, who is deemed representative of the class. Any member of the class can petition the court to become the lead plaintiff, or they can choose to remain an absent member of the class.
Information Sharing
Faruqi & Faruqi also encourages anyone with information about CrowdStrike’s conduct, including whistleblowers, former employees, shareholders, and others, to contact the firm.
About Faruqi & Faruqi
Faruqi & Faruqi, LLP is a leading national securities law firm with offices in New York, Pennsylvania, California, and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995.
