CrowdStrike Hit With Lawsuit Over Global Outage Impacting Air Travel, Plaintiffs Say Cybersecurity Firm Should Pay Compensatory And Punitive Damages
Portfolio Pulse from Ananya Gairola
CrowdStrike Inc. (NASDAQ:CRWD) is facing a class action lawsuit due to a global computer outage that affected air travel, banks, hospitals, and emergency lines. The plaintiffs allege negligence in software testing and deployment, seeking compensatory and punitive damages. Delta Air Lines (NYSE:DAL) also plans to take legal action against CrowdStrike.
August 06, 2024 | 6:20 am
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CrowdStrike is facing a class action lawsuit due to a global outage caused by a flawed software update. The lawsuit alleges negligence and seeks compensatory and punitive damages.
The lawsuit could lead to significant financial liabilities and damage CrowdStrike's reputation, potentially impacting its stock price negatively in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Delta Air Lines plans to take legal action against CrowdStrike over the global outage. Delta's CEO criticized Microsoft's platform and praised Apple's stability.
While Delta's legal action against CrowdStrike is notable, it is unlikely to have a significant immediate impact on Delta's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50