CrowdStrike, a cybersecurity firm, is being sued by its shareholders over a faulty software update that crashed over eight million Windows computers globally and caused major disruptions. The lawsuit accuses CrowdStrike of making "false and misleading" statements about adequately testing its software updates. CrowdStrike's share price dropped over 30% in the 12 days following the incident, resulting in an estimated $25 billion loss in market value. CrowdStrike denies the allegations in the lawsuit and says it will defend itself. The global outage lasted around ten days as CrowdStrike worked to fix the "bug" that allowed "problematic content data" to go undetected during the software update.
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00:00It's Benzinga, and here's what's on the block.
00:02CrowdStrike, a cybersecurity firm, is being sued by its shareholders over a faulty software
00:07update that crashed over 8 million Windows computers globally and caused major disruptions.
00:13The lawsuit accuses CrowdStrike of making false and misleading statements about adequately
00:17testing its software updates.
00:19CrowdStrike's share price dropped over 30% in the 12 days following the incident, resulting
00:23in an estimated $25 billion loss in market value.
00:27CrowdStrike denies the allegations in the lawsuit and says it will defend itself.
00:31The global outage lasted around 10 days as CrowdStrike worked to fix the bug that allowed
00:35problematic content data to go undetected during the software update.