Court Axes Investor Lawsuit Over CrowdStrike Software Update

Misstatement Claims Tossed in Class-Action Securities Case After CrowdStrike Outage Michael Novinson (MichaelNovinson) • January 14, 2026

A federal judge this week dismissed a securities fraud lawsuit accusing CrowdStrike of misleading the public about its product safety, testing rigor and regulatory compliance.

See Also: On-Demand | NYDFS MFA Compliance: Real-World Solutions for Financial Institutions

U.S. District for the Western District of Texas Judge Robert Pitman found most of Austin, Texas-based CrowdStrike's statements before and after the July 2024 global IT outage were non-actionable puffery or were not materially misleading when viewed in context. Pittman acknowledged that two statements about federal compliance could plausibly be misleading, but said the plaintiffs failed to establish intent or recklessness.

"Allegations that 'defendants were motivated to commit fraud by the need to raise capital, the desire for enhanced incentive compensation and the desire to sell stock at inflated prices' are - without more - insufficient to support ...