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CrowdStrike faces class-action lawsuit from customers as fallout from massive blackout continues

2024-08-06

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Source: Huanqiu.com

[Global Network Financial Comprehensive Report] On August 6, according to Reuters, cybersecurity "giant" CrowdStrike fell into deeper legal trouble due to the massive global computer outage last month. A class action lawsuit accepted by the federal court in Austin, Texas, directly pointed the finger at CrowdStrike. Three passenger representatives accused the company of serious negligence in the software testing and deployment process, resulting in flight delays and cancellations worldwide, causing huge losses to passengers.


The plaintiffs detailed in their complaint the inconveniences and economic losses they suffered as a result of the flight disruption, including additional accommodation and food expenses, as well as work delays and health problems caused by disrupted travel. They pointed out that given the frequent flight disruptions caused by similar technical reasons in the past, CrowdStrike should have foreseen the possibility of this disruption and should bear compensatory and punitive damages for it.

In response to the passengers’ allegations, CrowdStrike insisted in a statement: “We believe this case lacks merit and will vigorously defend the company.” However, this statement did not quell external doubts and criticism. In fact, since the outage, CrowdStrike has faced similar accusations and lawsuits many times, and the company’s stock price has been hit hard, falling by more than one-third.

The root cause of this massive power outage was a defective software update released by CrowdStrike, which caused more than 8 million computers worldwide to crash, seriously affecting the normal operation of multiple industries such as banks, hospitals, and emergency services. In the aviation field, Delta Air Lines became one of the most affected airlines, forced to cancel more than 6,000 flights, and suffered losses of up to $500 million.

Delta Air Lines has made it clear that it is considering taking legal action against CrowdStrike to seek compensation.