CrowdStrike is facing a lawsuit from shareholders after the catastrophic software update that caused massive disruption around the world.
The update, which went awry on July 19, led to a crash affecting over eight million computers.
The lawsuit, filed in federal court in Austin, Texas, accuses CrowdStrike of making “false and misleading” statements regarding the thoroughness of its software testing.
It claims the company’s share price plummeted 32 percent in the 12 days following the incident, resulting in a $25 billion (£14.5 billion) decrease in market value.
CrowdStrike has denied these allegations.
The company intends to defend itself against the class action suit vigorously.
The lawsuit seeks unspecified damages for investors who held CrowdStrike shares between November 29 and July 29.
“We believe this case lacks merit and we will vigorously defend the company”
It centers on claims that executives misled investors about the adequacy of software updates.
This includes a statement from CEO George Kurtz, who had assured on March 5 that the software was “validated, tested and certified.”
CrowdStrike maintains that the lawsuit is unfounded.
A company spokesperson said: “We believe this case lacks merit and we will vigorously defend the company.”
The incident also had a major impact on Delta Air Lines.
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CEO Ed Bastian said in an interview with CNBC that the outage cost the airline $500 million, including lost revenue and passenger compensation.
Delta is also considering legal action against CrowdStrike and has enlisted a high-profile lawyer to seek compensation.
The software failure affected 8.5 million Microsoft Windows computers, disrupting sectors such as airlines, banks, and hospitals.
CrowdStrike has identified a “bug” in its update system as the cause of the issue and promises improved software testing and developer scrutiny to prevent future occurrences.
