Attorneys assert that CrowdStrike, a cyber security business, deceived investors by hiding defects in its software testing.
It follows on the heels of a software update that the company distributed that on July 19 crashed over eight million PCs.
The global financial crisis caused havoc for thousands of companies, including banks, hospitals, broadcasters, and airports.
In addition to expressing regret to everyone impacted, George Kurtz, the CEO of CrowdStrike, said that a “software bug” was to blame and that it would require “some time” to resolve.
The firm made materially false and deceptive claims regarding its technology, according to the lawsuit, which was filed in Austin, Texas.
It stated that in the 12 days that followed the worldwide outage, CrowdStrike’s share price fell 32%, wiping away $25 billion (£19 billion) of its market value.Mr. Kurtz portrayed the company’s software as “validated, tested, and certified” on a March conference call, according to statements he made, which are included in the civil complaint.
Texas-based CrowdStrike’s representative stated: “We will vigorously defend the company and believe this case lacks merit.”
