CrowdStrike defeats shareholder lawsuit over huge software outage


FILE PHOTO: CrowdStrike logo is seen in this illustration taken July 29, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Jan 14 (Reuters) - A federal ‌judge dismissed a lawsuit by CrowdStrike shareholders who said the cybersecurity company defrauded ‌them by concealing its inadequate software testing and quality assurance procedures, before ‌a July 2024 outage crashed more than 8 million Microsoft Windows-based computers worldwide.

In a decision made public on Tuesday, U.S. District Judge Robert Pitman in Austin, Texas said shareholders failed to plausibly allege that a large number ‍of statements by CrowdStrike and top executives in regulatory filings, ‍on earnings calls and on the ‌company's website were materially false and misleading, or motivated by an intent to defraud.

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