The legal firm, Schall Law Firm, specializing in shareholder cases, issued a summons to CrowdStrike shareholders between November 29 and July 29, seeking damages from the company without specifying the amount claimed. The summons alleges that the company provided misleading information to investors, indicating software testing processes were inadequate, leading to widespread system failures among clients and subsequent lawsuits, resulting in a decline in stock value and company worth.
As of now, the lawsuit has not been officially approved, but a CrowdStrike spokesperson has stated their intention to defend against these claims. CrowdStrike stock has seen a continuous decline following the system failures, currently at $224 per share, a decrease of over 40% from this year’s peak.
Source: BBC, PR Newswire
TLDR: The Schall Law Firm is taking legal action against CrowdStrike for allegedly misleading investors about software testing processes, resulting in system failures and a significant decline in stock value. CrowdStrike intends to fight the lawsuit.
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