SAN FRANCISCO, Sept. 16, 2024 (GLOBE NEWSWIRE) — On September 12, 2024, SEMAFOR reported that software engineers at cybersecurity firm CrowdStrike “complained about rushed deadlines, excessive workloads, and increasing technical problems to higher-ups for more than a year before a catastrophic failure of its software paralyzed airlines and knocked banking and other services offline for hours.”
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.
Class Period: Nov. 29, 2023 – July 29, 2024
Lead Plaintiff Deadline: Sept. 30, 2024
Visit: www.hbsslaw.com/investor-fraud/CRWD
Contact the Firm Now: CRWD@hbsslaw.com
844-916-0895
Securities Class Action Against CrowdStrike Holdings, Inc. (CRWD):
According to the September 12, 2024 reporting by SEMAFOR, in the wake of CrowdStrike’s disastrous update to its flagship Falcon Sensor security product that contained a bug that caused a massive overnight outage affecting 8.5 million Windows computers around the world, a certain former employee said “‘[s]peed was the most important thing’” and “‘[q]uality control was not really part of our process or conversation.’”
The SEMAFOR article, “CrowdStrike ex employees: ‘Quality control was not part of our process,’” states “[a]lmost two dozen former software engineers, managers, managers and other staff described a workplace where executives prioritized speed over quality, workers weren’t always sufficiently trained, and mistakes around coding and other tasks were rising.” SEMAFOR also reported that “[o]ne former senior manager said they sat in multiple meetings where staff warned company leaders that CrowdStrike would ‘fail’ its customers by releasing products that couldn’t be supported.”
The pending litigation focuses on the propriety of CrowdStrike’s representations concerning the efficacy of its AI-native CrowdStrike Falcon platform, including assurances that its technology was “validated, certified, and tested.”
The complaint alleges that CrowdStrike’s assurances were false and misleading because the company failed to disclose that: (1) it instituted deficient controls in its procedures for updating Falcon and was not properly testing updates to Falcon before rolling them out to customers; (2) this inadequate software testing created a substantial risk that an update to Falcon could cause major outages for a significant number of CrowdStrike customers; and (3) such outages could pose, and ultimately created, substantial reputational harm and legal risk to the company.
The company’s assurances came into question beginning 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.”
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.”
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 $84.24 (-24%) since July 18, 2024.
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 case and our 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 firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. 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
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