CrowdStrike Hit With First Investor Suit Over Massive Outage (2)

CrowdStrike Holdings Inc. was hit with a federal securities fraud suit after a glitch in its Falcon cybersecurity software platform recently caused major shutdowns for users and its stock prices suffered major drops in two weeks.

CrowdStrike allegedly assured investors that its platform was “validated, tested, and certified,” despite the fact it didn’t have adequate procedures for testing and updating the platform, according to the class-action complaint filed Tuesday in the US District Court for the Western District of Texas by the Plymouth County Retirement Association.

This is the first investor suit against the cybersecurity company relating to the global ...