Crowd Strike Is Cloud Struck

We have all heard about the massive global IT outage caused by a bug in a CrowdStrike windows update in its security software. The outage occurred on July 19, 2024. The outage impacted millions of computers on Microsoft systems platforms throughout the world. The hardest hit were airlines, hospitals, and healthcare organizations. But the outage interrupted and potentially damaged thousands of everyday businesses .

Not surprisingly, the lawsuits have already begun. The Plymouth County Retirement Association (Plymouth, Mass.) alleges CrowdStrike maintained deficient controls and did not adequately test its software, despite repeated statements touting the efficacy of the Falcon platform, according to the complaint filed Tuesday in the U.S. District Court for the Western District of Texas. They claim that the share price of CrowdStrike dropped precipitously, from $343.05 to $232.00 as a result of the outage. Delta Airlines, one of the hardest hit airlines as a result of the outage, believes its damages could be $500 million.

But those cases are just the tip of the iceberg for this matter. Many thousands of insurance claims for business interruption will be filed. While many of the insurance companies might contend that the claims are not covered, these claims nevertheless will need to be quantified. That is where the forensic accountants and professionals come in. These claims will require independent determinations.