Following last week's update disaster, CrowdStrike shareholders are suing the cybersecurity company over its plummeting stock price. The Plymouth Coun

Shareholders Sue CrowdStrike After Outage Prompts Stock Price to Plummet

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2024-07-31 21:30:05

Following last week's update disaster, CrowdStrike shareholders are suing the cybersecurity company over its plummeting stock price.

The Plymouth County Retirement Association, which bought shares in CrowdStrike, filed a securities class-action lawsuit against the Texas-based cybersecurity vendor, demanding it pay damages for the stock price losses.

Prior to last Friday’s outage, CrowdStrike’s stock had been trading at historic highs, around $390 to $350. But the price has since fallen to $232 per share. The Plymouth County Retirement Association now wants compensation over claims CrowdStrike deceived shareholders about its Falcon security software, which accidentally caused the outage through a faulty update that bricked millions of PCs and servers.

CrowdStrike "repeatedly touted the efficacy of the Falcon platform while assuring investors that CrowdStrike’s technology was ‘validated, tested, and certified.’ The Complaint alleges that these statements were false and misleading,” the retirement association says.