SAN FRANCISCO, July 29, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges CrowdStrike Holdings, Inc. (NASDAQ: CRWD) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
Visit: www.hbsslaw.com/investor-fraud/CRWD
Contact the Firm Now: CRWD@hbsslaw.com
844-916-0895
CrowdStrike Holdings, Inc. (CRWD) Investigation:
The investigation focuses on the propriety of claims by CrowdStrike Holdings about the “technical superiority” of its AI-native CrowdStrike Falcon platform.
The company’s claims came into question 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.”
During the weekend, on July 20, 2024, CrowdStrike warned that hackers are trying to exploit the situation, saying that it observed “threat actors leveraging the event to distribute a malicious Zip archive.”
As the market digested this news, the price of CrowdStrike shares fell $79.14, or about 23%, over two trading days ended July 22, 2024. The news was accompanied by several analyst downgrades with one at Guggenheim downgrading CrowdStrike from buy to neutral, reportedly writing that “[t]he restoration of its reputation may take more time and will likely affect new business signings at least in the near-term.”
Most recently, on July 25, 2024, The Wall Street Journal reported that CrowdStrike’s “disastrous software update ought to put its financial reporting, not just its product issues, in an unwelcome spotlight.” The WSJ questioned (1) assumptions CrowdStrike uses to compute the primary metric for determining executive cash bonuses (“annual recurring revenue” or “ARR”), which assumes expiring subscription contracts will be renewed on the same terms, and (2) the company’s non-standard profitability metric for determining stock awards.
The WSJ noted that the ARR’s renewal assumption “may be a stretch, considering that CrowdStrike’s botched software update just caused a global computer outage, likely prompting many to rethink their existing contracts[]” and the non-standard profitability metric “also looks questionable” because it excludes stock-based pay and cost of litigation settlements.
If you invested in CrowdStrike and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the CrowdStrike investigation, read more »
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 CRWD@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
