Nadrich Accident Injury Lawyers is preparing to file a class action lawsuit against Crowdstrike and is representing owners of businesses who had to pay for, or have been invoiced for and are pending payment, outside IT services which were related to the July 2024 Crowdstrike outage. If you are a business owner who had such a loss, please contact us today. We want to help.
In July 2024, CrowdStrike ended up releasing what was intended to be a normal, routine update to cybersecurity software it makes for Windows-based devices known as Falcon. However, because the coding of the update was flawed, millions of computers throughout the world crashed – many of them displayed the dreaded Windows “blue screen of death.” Because of this, countless businesses, customers, investors and others are in need of taking legal action.
For many businesses who were affected by CrowdStrike’s outage, the computer crashes were just the beginning of their problems. The company was able to find and fix the problem in a mere 79 minutes. However, the IT outage caused a chain reaction of effects that lasted for weeks. Actual damages were caused by the outage – government entities weren’t able to process calls to 911, airline passengers weren’t able to go places, and businesses lost revenue and contracts due to not being able to electronically sign things before the expiration of deadlines. The outage caused significant losses – for example, the CEO of Delta Air Lines said the outage cost Delta $500 million in under a week.
The company’s stock price also fell sharply. The prices of CrowdStrike shares lost 18 months’ worth of gain in under a week. Now lawsuits on behalf of investors, including a lawsuit filed by a pension fund known as Plymouth County Retirement Association, are alleging that CrowdStrike misled investors when they claimed their technology was validated, tested and certified.
We can help those affected by the outage seek to recover their losses. If your livelihood or business has been impacted by the CrowdStrike outage, it’s vital for you to seek legal help in order to explore the options you have for compensation. Nadrich Accident Injury Lawyers offers free consultations to discuss your potential case and help you to understand the legal rights you have. Our experienced lawyers dedicate themselves to holding companies accountable for their negligence.
Call us today for a free consultation if your business needed outside IT services due to the July 2024 CrowdStrike outage. We will not charge you any fee to represent you until and unless we recover financial compensation for your CrowdStrike outage-related losses, meaning the only fee you’ll ever owe us is a percentage of any compensation we recover for you.
Who Can File a CrowdStrike Lawsuit?
Our legal teams are investigating the grounds for a class action lawsuit for business owners who needed to pay for outside IT services due to the Crowdstrike outage.
The Crowdstrike outage occurred due to Crowdstrike’s negligence leading to problematic content data being published in an update, and the company’s customers shouldn’t have to pay for the company’s negligence – allow us to help you seek compensation for your losses.
What Are Class Action Lawsuits?
We’re all consumers, and we’d all like to be able to think that products which we buy are safe, whether it be software, hygiene products or vehicles. Unfortunately, this isn’t always the case.
When numerous consumers suffer identical financial harm from corporate actions or products, their cases often end up being consolidated into one lawsuit which is referred to as a class action lawsuit.
Class action lawsuits differ from traditional lawsuits which involve one party suing another party. In class action lawsuits, the plaintiffs or the damaged parties are paid as class members in class actions.
July 2024 CrowdStrike Outage – What Happened
On July 19, 2024, a faulty configuration update was distributed by cybersecurity company CrowdStrike for Falcon software which runs on Windows computers. A configuration file was modified, and this modified caused out-of-bounds memory reads which caused computers to enter into bootloops or boot in recovery mode.
Windows 10 and 11 systems which ran the Falcon software were affected. The software by CrowdStrike did not give users a way to delay its content files’ installation.
While the problem was quickly identified and fixed, the effects it would have around the globe would be long-lasting and significant. An estimated 8.5 million devices got affected by the outage – according to CrowdStrike, almost 60 percent of Fortune 500 companies and over 50 percent of Fortune 1000 companies are its customers.
The top 500 companies in the United States by revenue, with the exclusion of Microsoft, suffered an estimated $5.4 billion in losses, but only $540 million to $1.08 billion of the losses would end up being insured.
5,078 flights around the world were canceled on the day of the outage. In total, on the day of and in the days after the outage, Delta had to cancel over 7,000 flights.
Numerous United States banks were affected, including Charles Schwab, Capital One, U.S. Bank, Wells Fargo, Bank of America and Chase.
911 services were disrupted in 14 different states, and multiple government agencies were affected, including the Department of Education, Department of Justice, National Nuclear Security Administration, Federal Trade Commission, NASA and the Department of Homeland Security.
Numerous hospitals around the United States had to pause non-urgent visits and surgeries.
Multiple television stations in the United States weren’t able to broadcast television due to the outage.
CrowdStrike Lawsuits
Numerous lawsuits have already been filed or threatened against CrowdStrike seeking compensation for losses sustained due to the outage:
- Investors in Texas have filed a lawsuit seeking compensation for losses they sustained when the value of the company’s shares fell. The lawsuit claims the company didn’t disclose that the controls it instituted in its Falcon update procedure were deficient, and that the company wasn’t testing Falcon updates properly before releasing them to customers. The lawsuit claims the company’s shares were traded at prices which were artificially high prior to the outage because the company failed to warn that its update procedure could lead to outages. A CrowdStrike spokesperson claimed the case lacks merit and said they would vigorously defend the company.
- The CEO of Delta, Ed Bastian, has threatened to file a lawsuit against CrowdStrike for the outage, claiming the company lost $500 million due to the outage. Bastian said that those like CrowdStrike with “priority access to the Delta ecosystem” need to test things like updates.
- Air travelers who experienced canceled or delayed flights have sued CrowdStrike, claiming the company should pay compensatory as well as punitive damages to those whose flights were disrupted. The travelers claim they had to deal with being stranded in airports, cancellations and significant delays due to the outage, and are suing for public nuisance, negligence and additional counts.
Call Us Today for a Free Consultation
We have been representing clients since 1990 and have recovered hundreds of millions of dollars on behalf of our clients. Our extensive experience means we can recover the most compensation possible on your behalf.
Call us today for a free case evaluation if you have had to pay for outside IT services due to the CrowdStrike outage. We can help you seek damages from Crowdstrike. Remember – we won’t charge a fee unless we win the CrowdStrike class action.
