A judge has dismissed a lawsuit brought by CrowdStrike shareholders against the company's July 2024 IT outage

CrowdStrike defeats shareholder lawsuit over huge software outage

A federal judge dismissed a lawsuit by CrowdStrike shareholders who said the cybersecurity company defrauded them by concealing its inadequate ​software testing and quality assurance procedures, before a July 2024 outage crashed more ‌than 8 million Microsoft Windows-based computers worldwide. In a decision made public on Tuesday, U.S. District Judge Robert Pitman ‌in Austin, Texas said shareholders failed to plausibly allege that a large number of statements by CrowdStrike and top executives in regulatory filings, on earnings calls and on the company's website were materially false and misleading, or motivated by an intent to defraud. Led by New York State ⁠Comptroller Thomas DiNapoli, the shareholders ‌alleged that CrowdStrike had "no test plans and no quality assurance team," citing former employees, and that executives at the Austin-based company prioritized "speed over ‍everything else" to maximize profit.