NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against CrowdStrike Holdings, Inc. (NASDAQ: CRWD) on behalf of long-term stockholders following a class action complaint that was filed against CrowdStrike on July 30, 2024 with a Class Period from November 29, 2023 to July 29, 2024. Our investigation concerns whether the board of directors of CrowdStrike have breached their fiduciary duties to the company.
CrowdStrike is a global cybersecurity company that provides software that helps prevent data breaches. According to the complaint, 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.
The CrowdStrike class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) this inadequate software testing created a substantial risk that an update to Falcon could cause major outages for a significant number of CrowdStrike’s customers; and (iii) such outages could pose, and in fact ultimately created, substantial reputational harm and legal risk to CrowdStrike.
The CrowdStrike class action lawsuit further alleges that on July 19, 2024, news broke that a flawed Falcon content update caused major worldwide technology outages for millions of devices running Microsoft Windows. On this news, the price of CrowdStrike stock fell more than 11%, according to the complaint.
Then, on July 22, 2024, the CrowdStrike class action lawsuit further alleges that Congress called on CrowdStrike CEO, defendant George Kurtz, to testify regarding the crisis and CrowdStrike’s stock rating was downgraded by analysts such as Guggenheim and BTIG. On this news, the price of CrowdStrike stock fell more than 13%, according to the complaint.
Finally, on July 29, 2024, news outlets reported that Delta Air Lines had hired prominent attorney David Boies to seek damages from CrowdStrike following the software outage, according to the complaint. On this news, the price of CrowdStrike stock fell nearly 10%, according to the CrowdStrike class action lawsuit.
If you are a long-term stockholder of CrowdStrike, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
