No end to CRWD's issues.
https://www.bbc.co.uk/news/articles/cy08ljxndr4o
CrowdStrike is being sued by its shareholders after a faulty software update by the cybersecurity firm crashed more than eight million computers and caused chaos around the world.
The lawsuit accuses the company of making "false and misleading" statements about its software testing.
It also says the company's share price dropped 32% in the 12 days after the incident, causing a loss in market value of $25bn (£14.5bn).
CrowdStrike denies the allegations and says it will defend itself against the proposed class action lawsuit.
Meanwhile, the firm has said computers affected by the massive global IT outage are effectively now back to normal.
The US-based company stated that as of 5pm local time on Monday, 29 July (00:00, Tuesday GMT), the outage had been fixed – ten days after the incident began.
The suit filed in the Austin, Texas federal court, alleges that CrowdStrike executives defrauded investors by making them believe the company's software updates were adequately tested.
The lawsuit is seeking an unspecified amount of compensation for investors who owned CrowdStrike shares between 29 November and 29 July.
It cites chief executive George Kurtz, who said in a conference call on 5 March that the firm's software was "validated, tested and certified."
CrowdStrike told BBC News that its disputes the claims.
“We believe this case lacks merit and we will vigorously defend the company,” a spokesperson said.
CrowdStrike sued by shareholders over global outage
byu/Mean_Office_6966 inwallstreetbets
Posted by Mean_Office_6966
19 Comments
And what’s the first thing the stock does? Rises of course 
And what’s the first thing the stock does? Rises of course 
And what’s the first thing the stock does? Rises of course 
So how does this work exactly ? The shareholders sue the company for a compensation from their own money?
What am I missing ?
Lawyers will get paid huge. People in the class action will get paid…very little.
ok so good news is bad for stonk, bad news is good for stonk
this is bad news
its wild that crowdstrike didnt instantly die off after the faulty update. I mean crowdstrike is supposed to protect IT systems yet had done more harm and caused more downtime/loss of revenue than any exploit or hack in history. Its not like its an irreplaceable product either their are others in the market.
Bullish
Cathie taking anothe beating
CRWD stock gonna take a month or 2 before it’s investable. Got burned immensely trying to buy the dip.
But they gave us gift cards 😞 is that not enough???
Where’s the money Lebowski? where’s the money shitheeeaaad…*dips the dude head in the toilet bowl*
This is dumb. “I gambled and lost money- company owes me”
Wait till customers start using CRWD for losses caused by the outage
Go find the 10k filing last year and check out the executive compensation packages. These folks are getting paid regardless
Imagine DCA for one year and find out you lose all the gain in two week.
They buy insurance for this type of lawsuit, it’s called D&O insurance and it covers defense and settlement of these claims, they likely have 100-200M worth which may not be enough but the 2k per hour defense attorneys will make out well and the plaintiffs firm will get a nice pay day while shareholders will get a few pennies per share.
So they kill their own investments?
I’m gonna wait until Auntie Nancy loads up, and then I’ll buy.