Investor Lawsuit Over CrowdStrike Outage Dismissed

According to SecurityWeek, a federal judge in Austin, Texas, has dismissed a major securities class action against CrowdStrike over the July 2024 outage caused by a software update, ruling that the plaintiffs failed to prove an intent to defraud investors. The incident led to the crash of millions of Windows devices worldwide and disrupted airports, banks, media outlets and hospitals after the update was pushed to endpoints running CrowdStrike’s software.

Shortly after the outage, investors filed the class action alleging false and misleading statements and omissions about the updates and their potential to cause outages and reputational harm. The court’s decision noted that the plaintiffs were misleading and took CrowdStrike’s statements out of context, and CrowdStrike’s chief legal officer Cathleen Anderson welcomed the ruling.

The decision does not affect the company’s ongoing dispute with Delta Air Lines, which alleges more than $500 million in lost revenue and incident response costs, while a separate airline passengers’ suit was dismissed in June 2025. 14 January 2026.