American cybersecurity firm CrowdStrike is being prosecuted by its shareholders after its faulty update, crashed millions of computers globally, throwing the world into disarray.
The chargesheet stated that the company had allegedly misled and defrauded the investors by making “false and misleading” claims over the testing of its software update which led to substantial losses, reported BBC.
Citing chief executive George Kurtz’s conference call on March 5th which stated that the firm’s software update was “validated, tested and certified”, the lawsuit reportedly sought an unspecified compensation for the investors who owned the company’s shares between November 29 and 29 July.
Advertisement
The company’s share price dropped by 32 per cent in 12 days after the incident, leading to a loss of $25bn in the market.
CrowdStrike disputed these claims and stated that it will defend against the prosecution. “We believe this case lacks merit and we will vigorously defend the company,” a spokesperson from the company said as per reports.
Meanwhile, it is reported that Delta Airlines Chief Executive, Ed Bastian, gave an interview to news channel CNBC stating that the outage had cost a loss of $500 million to the company, which included revenue losses and compensation to the passengers.
Advertisement
Delta has hired a prominent lawyer and seek compensation.
CrowdStrike’s security update on July 19 crashed many Microsoft computer users across the world disrupting operations across several sectors including airlines, banks and hospitals.
The company after reviewing the incident stated that there was "bug" in the system that was designed to make sure that the software worked properly.
In the aftermath of the event, the company assured the users that it would prevent incidents in the future, with better software checking and testing, scrutinising the developers.
