Technology

34789 readers

393 users here now

This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.

Ask in DM before posting product reviews or ads. All such posts otherwise are subject to removal.

Rules:

1: All Lemmy rules apply

2: Do not post low effort posts

3: NEVER post naziped*gore stuff

4: Always post article URLs or their archived version URLs as sources, NOT screenshots. Help the blind users.

5: personal rants of Big Tech CEOs like Elon Musk are unwelcome (does not include posts about their companies affecting wide range of people)

6: no advertisement posts unless verified as legitimate and non-exploitative/non-consumerist

7: crypto related posts, unless essential, are disallowed

founded 5 years ago

MODERATORS

[email protected]

CrowdStrike is sued by shareholders over huge software outage (www.reuters.com)

submitted 3 months ago by [email protected] to c/[email protected]

21 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 4 points 3 months ago

CrowdStrike (CRWD.O), has been sued by shareholders who said the cybersecurity company defrauded them by concealing how its inadequate software testing could cause the July 19 global outage that crashed more than 8 million computers.

In a proposed class action filed on Tuesday night in the Austin, Texas federal court, shareholders said they learned that CrowdStrike's assurances about its technology were materially false and misleading when a flawed software update disrupted airlines, banks, hospitals and emergency lines around the world.

Basically, the company advertised itself as being one way to the shareholders, they bought in on that basis, and then it turned out they were misrepresenting themselves. Presumably they're suing the company and not the executives personally because that's where the money is.

Note that simply owning the shares doesn't mean that it's already "their money." If I buy a share in a company I can't walk up to it and demand that they give me a portion of the cash from the register. It's more complicated than that and lawsuits like this are part of that complexity.