Tech Desk
Aug 07, 2024
CrowdStrike, a leading cybersecurity company, recently caused a global IT outage that affected major corporations, airlines, banks, and some emergency centres.
The blackout collectively cost an estimated $5 billion, prompting a host of lawsuits against the company. However, CrowdStrike fine print could insulate it from the lawsuits.
CrowdStrike has revealed that a faulty update caused the outage. That update was intended to make it easier to issue new threat updates to client PCs but contained a mistake that was responsible for crashing machines.
The company had taken measures to ensure that the problem did not happen again — it had changed the testing system and was adding runtime bounds to avoid crashing.
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However, with its strict liability limits, CrowdStrike's terms and conditions might be the thing that protects it against unprecedented legal actions. Getting around those claims University of California Law San Francisco (formerly UC Hastings) law professor Jonathan Cardi stated that it would be challenging, and those seeking ways to make CrowdStrike pay for their money losses will have to get creative in how they frame their cases against the company.
Moreover, Delta Airlines is suing CrowdStrike for $500 million, and a class action lawsuit has been filed on behalf of CrowdStrike shareholders.
Another law firm is looking into bringing a class action on behalf of small businesses affected by the outage. However, CrowdStrike's small print may limit its liability.
