Overview
- U.S. District Judge Robert Pitman in Austin ruled that shareholders failed to plausibly allege materially false statements or an intent to defraud.
- The complaint challenged numerous statements about CrowdStrike’s security and compliance practices, though the court found that two questionable remarks did not establish scienter.
- New York State Comptroller Thomas DiNapoli, who leads the class action, is reviewing the ruling and may submit an amended complaint.
- A flawed Falcon software update on July 19, 2024 crashed more than 8 million Windows machines, disrupted airlines, banks, hospitals and 911 services, and wiped out about $25 billion in market value.
- Related litigation remains active, with Delta’s Georgia case moving forward after most claims survived and airline passengers pursuing an appeal of last year’s dismissal.