SAN DIEGO, July 31, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired CrowdStrike Holdings, Inc. (NASDAQ: CRWD) Class A common stock between November 29, 2023 and July 29, 2024. CroudStrike is a global cybersecurity company that provides software that helps prevent data breaches. CrowdStrike’s main product is the Falcon software platform, which purportedly uses artificial intelligence and machine learning technologies to detect, prevent, and respond to security breach threats.
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The Allegations: Robbins LLP is Investigating Allegations that CrowdStrike Holdings, Inc. (CRWD) Misled Investors Regarding the Efficacy of its Falcon Product
According to the complaint, during the class period, defendants repeatedly touted the efficacy of the Falcon platform while assuring investors that CrowdStrike’s technology was “validated, tested, and certified.” The complaint contends these statements were false and misleading because defendants failed to disclose that: (1) CrowdStrike had instituted deficient controls in its procedure for updating Falcon and was not properly testing updates to Falcon before rolling them out to customers; (2) this inadequate software testing created a substantial risk that an update to Falcon could cause major outages for a significant number of the Company’s customers; and (3) such outages could pose, and in fact ultimately created, substantial reputational harm and legal risk to CrowdStrike.
Beginning on July 19, 2024, investors learned about critical issues with CrowdStrike’s technology when a single update pushed by CrowdStrike caused outages for millions of users of Microsoft Windows devices worldwide, including financial institutions, government entities, and corporations. Further, CrowdStrike disclosed that the outages had left users vulnerable to potential hacking threats. On this news, shares of CrowdStrike fell $38.09, or 11%, to close at $304.96 on July 19, 2024. As more information came to light regarding the outages, the Company’s stock continued to decline, closing at $233.64 on July 30, 2024.
What Now: You may be eligible to participate in the class action against CrowdStrike Holdings, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by September 30, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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