Pomerantz LLP is investigating CrowdStrike Holdings, Inc. (NASDAQ: CRWD) for potential securities fraud following a significant software outage on July 19, 2024.
The outage, caused by a software update, impacted various sectors, highlighting CrowdStrike’s crucial role in cybersecurity.
Pomerantz LLP, a firm renowned for its expertise in corporate, securities, and antitrust class litigation, is currently investigating CrowdStrike Holdings, Inc. (NASDAQ: CRWD) on behalf of its investors. This investigation is in response to a significant disruption caused by a software outage on July 19, 2024, raising concerns over potential securities fraud or other illegal business practices by CrowdStrike and certain of its officers and/or directors. The outage, linked to a software update for Microsoft Windows systems issued by CrowdStrike, affected a wide array of businesses across various sectors, including banks, airlines, TV stations, healthcare providers, and hotels, underscoring the critical nature of CrowdStrike’s services in the cybersecurity domain.
CrowdStrike, a leading cybersecurity firm, is recognized for its advanced cloud-delivered protection of endpoints, cloud workloads, identity, and data. The company’s technology is pivotal in safeguarding organizations from cyber threats, making the July 19 outage not just a technical failure but a significant disruption to essential services and operations across multiple industries. The CEO of CrowdStrike has publicly taken responsibility for the incident, issuing an apology for the inconvenience and disruptions caused to its clients and their operations.
The financial repercussions of the outage were immediately felt by CrowdStrike’s investors, as the company’s stock price took a substantial hit, plummeting $38.05 per share, or 11.09%, to close at $305.00 per share on the day of the outage. This sharp decline in stock value reflects the market’s reaction to the potential risks and uncertainties introduced by the software failure, underscoring the importance of reliability and trust in the cybersecurity sector.
Investors affected by the stock price drop and the broader implications of the software outage are being urged to contact Danielle Peyton at Pomerantz LLP. The firm, boasting over 85 years of experience and a track record of recovering billions of dollars in damages awards on behalf of class members, is seeking to gather more information and potentially pursue a class action lawsuit to address the grievances of CrowdStrike’s investors. This legal action aims to hold the company accountable for the financial losses incurred by its shareholders and to ensure such disruptions are prevented in the future.
For those seeking more information or wishing to participate in the investigation, Pomerantz LLP has made further details available through their announcement, providing a platform for affected parties to learn more about the case and how they can get involved.
