New York State Comptroller Thomas P. DiNapoli, as trustee of the New York State Common Retirement Fund (Fund), has been appointed lead plaintiff in a securities fraud class action lawsuit filed against the global cybersecurity company Crowdstrike Holdings Inc.
The suit filed against Crowdstrike, its chief executive officer and chief financial officer, centers on false statements made by the defendants regarding quality assurance leading up to the July 19, 2024, worldwide IT outage caused by the Austin, Texas-based company’s failed software updates and resulting plummet in share value.
“Crowdstrike misled investors by falsely touting its safeguards and quality assurance,” DiNapoli said. “Its actual failure to meet industry standards and deficient software testing and security processes were exposed after it caused one of the largest cyber-disasters in history leading to a worldwide shutdown and billions in losses to investors. As lead plaintiff, we look to hold company leadership accountable for misleading investors. Moreover, this action may present opportunities for corporate governance reforms to strengthen the company and protect shareholder value.”
The class in this action will be represented by Bernstein Litowitz Berger & Grossman and local Texas counsel Martin & Drought.
The Fund held shares of Crowdstrike valued at approximately $72 million as of Sept. 30, 2024.
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