As if Delta hiring a Harvey Specter wannabe lawyer to recover their supposed $500 million from Crowdstrike’s outage wasn’t enough - shareholders have recently decided to grab their picks and forks as well. 

(Source: Giphy) 

As we all know, (and are tired of hearing) Crowdstrike’s global IT sh^t storm sent shockwaves through the aviation and tech industries, leading to a cascade of legal repercussions and a bruising stock price for Crowdstrike. However in addition to the chaos and pain felt from customers, $CRWD shareholders are now deciding to speak up and “express themselves” with their own class action lawsuit.  

(Source: CBC News) 

Which is understandable, considering while shareholders thought they were in on a good solid company, some poor IT guy sent an update that unleashed a record number of “Did you try turning it off and then back on again?” questions. 

(Source: Giphy) 

According to the suit, this has shareholders claiming the company was about as truthful as a politician during election season when it came to their software testing. In fact, it wasn’t just untruthful to the shareholders - they claim the testing and robustness of Crowdstrike’s technology was "materially false and misleading." Signifying that Crowdstrike knew that if they messed up, crap would go down. 

(Source: Giphy) 

Which again, was indeed what happened following Delta’s catastrophic damages that stranded thousands of passengers and caused over 5,000 flight cancellations—more than the airline had in total throughout 2019. 

(Source: Yahoo Finance) 

This had Delta CEO, Ed Bastian, doing his best “it’s not me, it’s you” impression as he blamed Crowdstrike for costing the airline $500 million, which includes lost revenue and the costs associated with compensating affected passengers, many of whom required accommodations and refunds.

As expected, CrowdStrike's stock price plummeted by 32% in just over a week, wiping out approximately $25 billion in market value. This sharp decline has eroded investor confidence significantly, with the stock down -20.40% year-to-date. 

(Source: PC Mag) 

So yeah, things aren’t looking that hot for Crowdstrike, no matter how many times Cathie Wood dip buys the stock. 

But just like in court, there’s always another side to the story. In response to the legal challenges and the fallout from the outage, CrowdStrike has expressed its intention to vigorously defend itself against the allegations (See: How to solve legal problems by “settling”). Yet, one spokesperson stated that the company has "no knowledge of a lawsuit and has no further comment," indicating a reluctance to engage publicly with the media while the legal proceedings unfold. 

(Source: Giphy) 

However, the lack of quick action or immediate reparations (besides a dang $10 Uber eats voucher) from Crowdstrike raises questions about the company's accountability and commitment to its partners.

So with that said, as shareholders piggyback on Delta’s quest to recover it’s half a billion they say they are owed, it’s clear CrowdStrike faces a challenging road ahead, potentially with more lawsuits looming.

(Source: Giphy) 

The fallout from this incident could reshape how companies approach software testing and risk management, particularly in sectors where technology plays a mission-critical role. You know, because our digital world seems to be as stable as a Jenga tower. 

But in the end, when it comes to investors, whether you’ve ditched Crowdstrike or you’re holding for dear life (bless your heart), this fiasco ain’t over. 

(Source: Business Insider) 

While Crowdstrike is going to need more than just a good lawyer to wiggle out of this mess, this drama has definitely put a stain on their reputation. From here on out, they will always be referred to as the company that caused the world’s worst IT outage. And that my friends, doesn’t exactly scream future confidence for investors. 

With that said, Crowdstrike closed -3.33% on the day (down -42.82% MTD). 

Stocks.News doesn't hold any positions in companies mentioned.