CrowdStrike is sued by shareholders over huge software outage

FILE PHOTO: Air Asia passengers queue at counters inside Don Mueang International Airport Terminal 1 amid the global outage that disrupted the airline's operations, in Bangkok, Thailand, on July 19, 2024. REUTERS/Chalinee Thirasupa//File Photo

(Reuters) - CrowdStrike has been sued by shareholders who said the cybersecurity company defrauded them by concealing how its inadequate software testing could cause the July 19 global outage that crashed more than 8 million computers.

In a proposed class action filed on Tuesday night in the Austin, Texas federal court, shareholders said they learned that CrowdStrike's assurances about its technology were materially false and misleading when a flawed software update disrupted airlines, banks, hospitals and emergency lines around the world.