NEWTOWN, Pa., Aug. 2, 2024 /PRNewswire/ -- Edelson Lechtzin LLP, a leading class action law firm, announces the filing of a class action lawsuit against CrowdStrike for violations of federal securities laws on behalf of investors of CrowdStrike Holdings, Inc. (NASDAQ: CRWD) common stock between November 29, 2023, and July 29, 2024 (the "Class Period"). To join this case, go HERE.

Edelson Lechtzin LLP (PRNewsfoto/Edelson Lechtzin LLP)

Investors who purchased CrowdStrike stock may move the U.S. District Court for the Western District of Texas to appoint them as lead plaintiff, no later than September 30, 2024. To learn more about the lead plaintiff selection process, call Edelson Lechtzin LLP at 844-696-7492, or e-mail us at elechtzin@edelson-law.com.

Background on CrowdStrike Holdings, Inc.

CrowdStrike is a leading global cybersecurity company specializing in software solutions designed to prevent data breaches.

The Securities Fraud Claims

The lawsuit alleges that, throughout the class period, Defendants made materially false and misleading statements and/or failed to disclose that: (i) CrowdStrike had instituted deficient controls in its procedure for updating Falcon and was not properly testing updates to Falcon before rolling them out to customers; (ii) this inadequate software testing created a substantial risk that an update to Falcon could cause major outages for the significant number of the Company's customers; and (iii) such outages could pose, and ultimately created, substantial reputational harm and legal risk to CrowdStrike.

On July 19, 2024, a software update from CrowdStrike caused extensive outages for millions of Microsoft Windows users worldwide, affecting financial institutions, government agencies, airlines and other businesses. On news of the IT outage, CrowdStrike stock fell $38.09 per share, or 11%, to close at $304.96 on July 19, 2024.

Then on July 22, 2024, in the aftermath of the CrowdStrike outage, Congress summoned CrowdStrike CEO George Kurtz to testify about the incident. Additionally, analysts like Guggenheim and BTIG downgraded the company's stock rating. On this news, CrowdStrike stock fell $41.05 per share, or 13.5%, to close at $263.91 on July 22, 2024.

The case is Plymouth County Retirement Association v. CrowdStrike Holdings, Inc., Case No. 1:24-cv-00857 (W.D. Tex.).

About Edelson Lechtzin LLP

Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on cases alleging violations of the federal antitrust laws, breaches of ERISA fiduciary duties, wage theft, consumer fraud, and data breaches.

This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

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SOURCE Edelson Lechtzin LLP

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