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Allegations
The filed complaint alleges that CrowdStrike Holdings, Inc. made materially false and/or misleading statements and/or failed to disclose that: (1) CrowdStrike had instituted deficient controls in its procedure for updating the Company's main product software, Falcon and was not properly testing updates to Falcon before rolling them out to customers; (2) this inadequate software testing created a substantial risk that an update to Falcon could cause major outages for a significant number of the Company’s customers; and (3) such outages could pose, and in fact ultimately created, substantial reputational harm and legal risk to CrowdStrike. As a result of these materially false and misleading statements and omissions, CrowdStrike stock traded at artificially high prices during the Class Period.