Crowdstrike Class Action
Crowdstrike Class Action
Defendant.
Plaintiffs Julio del Rio, Jack Murphy, and Steven Bixby (collectively, “Plaintiffs”),
individually and on behalf of all others similarly situated (collectively, “Class members”), by and
through the undersigned attorneys, bring this Class Action Complaint against Defendant
CrowdStrike, Inc. (“Defendant” or “CrowdStrike”), and complain and allege upon personal
knowledge as to themselves and information and belief as to all other matters as follows.
INTRODUCTION
cybersecurity services and products intended to keep computers safe from cyberattacks and
2. On July 19, 2024, CrowdStrike released a security software update for its Falcon
platform. Rolling out this update should have been a routine process without any noticeable impact
on CrowdStrike’s customers’ information technology (“IT”) systems. Instead, shortly after the
1
Tom Warren, Inside the 78 minutes that took down millions of Windows machines, THE VERGE
(July 23, 2024 10:40 AM), https://www.theverge.com/2024/7/23/24204196/crowdstrike-
windows-bsod-faulty-update-microsoft-responses.
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 2 of 27
more serious bugs2 or errors that caused millions of computers around the world to repeatedly
8,500,000 devices went offline due to the CrowdStrike update.3 CrowdStrike’s carelessness caused
across a range of industries, including the aviation industry. The CrowdStrike Outage disrupted
airline and airport IT systems, causing a cascade of flight delays and cancellations as airlines
6. CrowdStrike’s flawed update not only interfered with airlines—it also severely
interrupted the lives of the millions of people traveling in the days immediately following the
CrowdStrike Outage. The CrowdStrike Outage grounded thousands of flights and delayed
2
“A software bug is a problem causing a program to crash or produce invalid output. The
problem is caused by insufficient or erroneous logic. A bug can be an error, mistake, defect or
fault, which may cause failure or deviation from expected results.” Margaret Rouse, Software
Bug, TECHOPEDIA (June 20, 2024), https://www.techopedia.com/definition/24864/software-bug.
3
E.g., CIO Staff & Francisca Dominguez Zubicoa, Delta Airlines to ‘rethink Microsoft’ in wake
of CrowdStrike outage, CIO (Aug. 1, 2024), https://www.cio.com/article/3480378/delta-airlines-
to-rethink-microsoft-in-wake-of-crowdstrike-outage.html.
4
See The Consequences Of The CrowdStrike Update, NPR (July 31, 2024 6:18 PM),
https://www.npr.org/2024/07/31/1198912548/1a-07-31-
2024#:~:text=The%20Consequences%20Of%20The%20CrowdStrike%20Update%20%3A%201
A%20It's%20been%20called,to%20broadcast%20news%20to%20hospitals.
5
See Aarian Marshall, Why the Global CrowdStrike Outage Hit Airports So Hard, WIRED (July
19, 2024 5:00 PM), https://www.wired.com/story/crowdstrike-windows-outage-airport-travel-
delays/.
2
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 3 of 27
thousands more, often stranding travelers in airports thousands of miles away from their intended
7. But lengthy delays were not the only consequence of the outage for travelers. Faced
with increasingly long delays and mounting flight cancellations, many travelers had no option but
to spend hundreds of dollars or more on additional meals, lodging, or other travel arrangements as
8. CrowdStrike’s failure to properly develop, test, and deploy the Falcon update
caused the CrowdStrike Outage and delayed or cancelled Plaintiffs’ and Class members’ flights.
These delays and cancellations in turn forced Plaintiffs and Class members to incur additional
expenses and damages. This action seeks to remedy these consequences of CrowdStrike’s
negligence. Plaintiffs bring this action on behalf of themselves and all persons who had a flight
9. Plaintiffs, on behalf of themselves and all other Class members, assert claims for
negligence, violation of the California Unfair Competition Law, and public nuisance, and seek
declaratory relief, injunctive relief, monetary damages, statutory damages, punitive damages,
PARTIES
6
E.g., Shayla Reaves & Athony Bettin, Days after CrowdStrike outage, North Carolina woman
still stuck at MSP Airport, CBS NEWS (July 22, 2024 7:55 AM),
https://www.cbsnews.com/minnesota/news/north-carolina-woman-stuck-at-msp-airport-after-
crowdstrike-outage/.
3
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 4 of 27
11. Plaintiff del Rio and his spouse had purchased tickets for a July 19, 2024 direct
flight from Hawaii’s Kona International Airport (“KOA”) to Los Angeles International Airport for
approximately $800.
12. The CrowdStrike Outage affected the IT system of the airline Plaintiff del Rio
planned to travel on, which caused Plaintiff del Rio’s flight to be delayed multiple times, before
ultimately being canceled. Plaintiff del Rio was forced to spend time and effort attempting to
13. The chaos caused by the CrowdStrike Outage meant Plaintiff del Rio was not able
to book another direct flight from KOA to Los Angeles International Airport on the same airline.
Instead, Plaintiff del Rio was forced to purchase tickets for a different airline’s flight to San
Francisco, California. Plaintiff del Rio paid approximately $1,200 out-of-pocket for these tickets.
He has not received a reimbursement or refund of the cost of his tickets on the original, canceled
flight.
14. Plaintiff del Rio’s flight to San Francisco was scheduled to leave on July 20, 2024,
the day after his original flight would have left but for the CrowdStrike Outage. As a result,
Plaintiff del Rio was stranded at KOA for an additional 11 hours overnight.
15. Stranded overnight at the airport due to the CrowdStrike Outage, Plaintiff del Rio
had no other options but to sleep on benches or the floor during the 11-hour delay. As a result,
Plaintiff del Rio developed pain in his neck and back which lasted for several days.
16. The CrowdStrike Outage was still causing massive flight delays and cancellations
when Plaintiff del Rio arrived in San Francisco. As a result, Plaintiff del Rio could not get a flight
from San Francisco to Los Angeles. Instead, he had to purchase tickets on yet another flight, this
4
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17. Plaintiff del Rio had no way to reach the San Jose airport for his next flight other
than to pay for an Uber, which cost him approximately $80. Once Plaintiff del Rio arrived at the
Burbank airport, he again had to pay for an Uber to take him home, which cost approximately $80.
18. Because the CrowdStrike Outage caused such extensive flight delays and
cancellations, Plaintiff del Rio did not arrive home until approximately 11:00 PM PST on July 20,
2024, approximately 17 hours after he was originally scheduled to return. As a result of the nearly
17 extra hours of travel, Plaintiff del Rio was forced to use his accrued paid time off to miss an
20. On July 19, 2024, Plaintiff Murphy planned to fly from Columbia, South Carolina
21. The CrowdStrike Outage affected the IT system of the airline Plaintiff Murphy
planned to travel on. As a result, Plaintiff Murphy’s flight from Columbia to Atlanta was delayed
for several hours, before ultimately being canceled. Plaintiff Murphy was forced to spend time and
22. Due to the CrowdStrike Outage, Plaintiff Murphy’s flight from Atlanta to
Cleveland was also significantly delayed, stranding Plaintiff Murphy in the Atlanta airport for
approximately nine hours. During the delay, he spent additional time and effort attempting to
arrange an alternate flight to Cleveland, including waiting in a line to speak with airline personnel
for nearly three and a half hours before Plaintiff Murphy was able to book a different flight to
Cleveland.
5
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 6 of 27
23. Due to the CrowdStrike Outage, Plaintiff Murphy did not arrive in Cleveland until
approximately 2:30 AM CDT on July 20, 2024. Due to the late hour, Plaintiff Murphy could not
hire an Uber to drive him from the Cleveland airport to his home. As a result, Plaintiff Murphy’s
wife was forced to drive to the airport to pick up Plaintiff Murphy, a trip of approximately 45
minutes each way. This drive to and from the airport, which would not have been necessary had
the CrowdStrike Outage not grounded flights, used gas that Plaintiff Murphy would not have
24. Plaintiff Murphy did not arrive home until approximately 3:30 AM, which severely
interrupted Plaintiff Murphy’s normal sleep schedule. The disruption to Plaintiff Murphy’s sleep
schedule caused him to suffer a migraine during the day of July 20, 2024. Plaintiff Murphy
experienced dizziness, pains in his head, sensitivity to light, and nausea due to the migraine.
26. On July 19, 2024, Plaintiff Bixby planned to fly from Harrisburg, Pennsylvania to
O’Hare International Airport in Chicago, Illinois (“O’Hare”), and from O’Hare to Fort Worth,
Texas.
27. The CrowdStrike Outage affected the IT system of the airline Plaintiff Bixby
planned to travel on. As a result, Plaintiff Bixby’s flight from Harrisburg to O’Hare was delayed
approximately three hours. Plaintiff Bixby’s flight from O’Hare to Fort Worth was similarly
28. Plaintiff Bixby’s trip from Harrisburg to Fort Worth was scheduled to take
approximately eight hours. But because the CrowdStrike Outage delayed his flights, his trip instead
took approximately 17.5 hours—over nine hours longer than it otherwise would have.
6
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 7 of 27
29. Because the CrowdStrike Outage affected the IT system of the airline Plaintiff
Bixby travelled on, Plaintiff Bixby’s luggage was delayed and did not arrive in Fort Worth until
several hours after Plaintiff Bixby. Plaintiff Bixby had to return to the airport to retrieve his
luggage when it finally arrived at approximately 2:00 AM CDT on July 20, 2024.
30. Defendant CrowdStrike, Inc., is a Delaware corporation with its principal place of
business located at 206 E. 9th Street, Suite 1400, Austin, TX 78701. It may be served through its
registered agent: Corporation Service Company, 211 E. 7th Street, Suite 620, Austin, TX 78701.
31. The Court has subject matter jurisdiction over Plaintiffs’ claims under 28 U.S.C. §
1332(d)(2), because (a) there are 100 or more Class members, (b) at least one Class member is a
citizen of a state that is diverse from Defendant’s citizenship, and (c) the matter in controversy
32. This Court has general personal jurisdiction over Defendant CrowdStrike, Inc.,
because it maintains its principal place of business in this State, regularly conducts business in this
33. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b) because Defendant’s
principal places of business are in this District and a substantial part of the events, acts, and
7
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 8 of 27
FACTUAL ALLEGATIONS
Overview of CrowdStrike
34. Founded in 2011, CrowdStrike’s products are “tailored for large [organizations] in
which CrowdStrike’s tools help them monitor their networks for signs of attack, and provide them
35. CrowdStrike “is among the most popular cybersecurity providers in the world, with
close to 30,000 subscribers globally.”8 Among CrowdStrike’s customers are 298 Fortune 500
companies, including financial service firms, healthcare providers, technology firms, and food and
beverage companies, among others.9 Also amongst its customers are major airlines, including
American Airlines, Delta, and United.10 These “are huge companies that collectively have
36. CrowdStrike’s “primary technology is the Falcon platform, which helps protect
systems against potential threats in a bid to minimize cybersecurity risks.”12 Falcon is a security
7
Toby Murray, What is CrowdStrike Falcon and what does it do? Is my computer safe?, THE
CONVERSATION (July 19, 2024 6:20 AM), https://theconversation.com/what-is-crowdstrike-
falcon-and-what-does-it-do-is-my-computer-safe-
235123#:~:text=CrowdStrike%20is%20a%20US%20cyber,response%E2%80%9D%20(EDR)%
20software.
8
Martin Coulter, CrowdStrike chaos could prompt rethink among investors, customers, REUTERS
(July 19, 2024 5:52 PM), https://www.reuters.com/technology/cybersecurity/crowdstrike-chaos-
could-prompt-rethink-among-investors-customers-2024-07-
19/#:~:text=CrowdStrike%20%2D%20which%20previously%20reached%20a,its%20growth%2
0and%20high%20margin.
9
We stop breaches, CROWDSTRIKE, https://www.crowdstrike.com/platform/ (last accessed Aug.
5, 2024).
10
Kim Komando, The real reason CrowdStrike brought companies to their knees, KOMANDO
(July 20, 2024), https://www.komando.com/news/the-real-reason-crowdstrike-brought-
companies-to-their-knees/.
11
Id. (emphasis in original).
12
Sean Michael Kerner, CrowdStrike outage explained: What caused it and what’s next,
TECHTARGET (July 25, 2024), https://www.techtarget.com/whatis/feature/Explaining-the-largest-
IT-outage-in-history-and-whats-next.
8
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 9 of 27
software product that, once installed on a computer, helps prevent cyberattacks and malware.13
Falcon is “purpose-built to stop breaches via a unified set of cloud-delivered technologies that
37. CrowdStrike offers its software products, including those responsible for or
involved in the CrowdStrike Outage, on a subscription basis to its customer. CrowdStrike licenses
the use of the software, but at all times retains ownership of the software.15
38. On or about Friday, July 19, 2024, “as part of regular operations, CrowdStrike
released a [Falcon] content configuration update for the Windows sensor to gather telemetry on
possible novel threat techniques.”16 Updates of this type “are a normal part of the [Falcon] sensor’s
operation and occur several times a day in response to novel tactics, techniques, and procedures
discovered by CrowdStrike.”17 CrowdStrike claims “[t]his is not a new process; the architecture
39. With that update, CrowdStrike “introduced a logic error” which caused the Falcon
sensor to crash and, as a result, crashed the Windows systems itself.19 The crashes were caused by
13
Murray, supra note 7.
14
What is CrowdStrike? Falcon platform FAQ, CROWDSTRIKE,
https://www.crowdstrike.com/products/faq/ (last accessed Aug. 5, 2024).
15
E.g., CrowdStrike Terms and Conditions, CROWDSTRIKE, https://www.crowdstrike.com/terms-
conditions/ (last accessed Aug. 5, 2024); CrowdStrike Software Terms of Use, CROWDSTRIKE,
https://www.crowdstrike.com/software-terms-of-use/ (last accessed Aug. 5, 2024).
16
Preliminary Post Incident Review (PIR): Content Configuration Update Impacting the Falcon
Sensor and the Windows Operating System (BSOD), CrowdStrike (July 24, 2024),
https://www.crowdstrike.com/blog/falcon-content-update-preliminary-post-incident-report/.
17
Technical Details: Falcon Content Update for Windows Hosts, CROWDSTRIKE (July 20, 2024),
https://www.crowdstrike.com/blog/falcon-update-for-windows-hosts-technical-details/.
18
Id.
19
Kerner, supra note 12.
9
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 10 of 27
“a defect in the Rapid Response Content, which went undetected during validation checks.”20 The
July 19 update supposedly “passed validation despite containing problematic content data.”21
CrowdStrike did not subject the update to additional testing or verifications before publishing it.22
40. Once a Windows computer received the update, “problematic content in [the
exception could not be gracefully handled, resulting in a Windows operating system crash.”23
41. Windows computers that received the Falcon update were forced into a “recovery
boot loop,” meaning the computers could not start and operate properly.24 The computers displayed
a “blue screen of death,” which indicates a “stop error . . . a critical error that has caused the
42. CrowdStrike’s channel file updates, such as the update that caused the CrowdStrike
Outage, “were pushed to computers regardless of any settings meant to prevent such automatic
updates.”26
20
Preliminary Post Incident Review Executive Summary, CROWDSTRIKE,
https://www.crowdstrike.com/wp-content/uploads/2024/07/CrowdStrike-PIR-Executive-
Summary.pdf (last accessed Aug. 5, 2024).
21
Id.
22
Bill Toulas, CrowdStrike: ‘Content Validator’ bug let faulty update pass checks, BLEEPING
COMPUTER (July 24, 2024 10:16 AM),
https://www.bleepingcomputer.com/news/security/crowdstrike-content-validator-bug-let-faulty-
update-pass-checks/.
23
Preliminary Post Incident Review (PIR), supra note 16.
24
Tom Warren, Major Windows BSOD issue hits banks, airlines, and TV broadcasters, THE
VERGE (July 19, 2024 2:17 AM), https://www.theverge.com/2024/7/19/24201717/windows-
bsod-crowdstrike-outage-issue.
25
Davey Winder, Blue Screen of Death—Microsoft Says Turn It Off And On Again And Again
And Again, Forbes (July 20, 2024 7:03 AM),
https://www.forbes.com/sites/daveywinder/2024/07/20/blue-screen-of-death-microsoft-says-
turn-it-off-and-on-again-and-again-and-again/.
26
Wes Davis, CrowdStrike’s faulty update crashed 8.5 million Windows devices, says Microsoft,
THE VERGE (July 20, 2024 12:20 PM),
https://www.theverge.com/2024/7/20/24202527/crowdstrike-microsoft-windows-bsod-outage.
10
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 11 of 27
delivery . . . such that software updates are deployed at once for many customers at scale.”27 In
total, the “faulty update” caused a global technology disaster that affected 8.5 million Windows
devices.28
44. At all relevant times, CrowdStrike knew, or should have known, that failing to
develop, implement, and maintain reasonable software development, testing, and validation
45. At all relevant times, CrowdStrike also knew, or should have known, that
publishing and disseminating an update containing serious flaws, errors, invalid date, or bugs,
would cause a massive and widespread outage of its customers’ computer systems.
46. Software containing a flaw or bug can “degrade interconnected systems or cause
serious malfunctions.”29 To prevent these issues, software testing is an essential practice to ensure
software functions as expected and to detect serious flaws, errors, invalid data, or bugs in the
software.30
27
See Matt Kapko, CrowdStrike says flawed update was live for 78 minutes, CYBERSECURITY
DIVE (July 23, 2024), https://www.cybersecuritydive.com/news/crowdstrike-flawed-update-78-
minutes/722070/.
28
Davis, supra note 26.
29
What is software testing?, IBM, https://www.ibm.com/topics/software-testing (last accessed
Aug. 5, 2024).
30
The Importance of Software Testing, IEEE COMPUT. SOC.,
https://www.computer.org/resources/importance-of-software-testing (last accessed Aug. 5,
2024).
11
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 12 of 27
47. “The importance of effective testing cannot be overstated when developing and
maintaining complex, reliable software systems in today’s world.”31 Indeed, CrowdStrike itself
48. While companies such as CrowdStrike deploy security updates often, “it is
important that they aren’t rushed and go through the basic due diligence to ensure something like
CrowdStrike [O]utage doesn’t happen.”33 If a software update has the potential to affect “not just
your users but your users’ users, you must slow-roll the release over a period of hours or days,
rather than risk crippling the entire planet with one large update.”34
49. In filings with the Security and Exchange Commission, CrowdStrike has
acknowledged the risk that product enhancements “may have quality or other defects or
deficiencies.”35 CrowdStrike also knew that, “[b]ecause our cloud native security platform is
complex, it may contain defects or errors that are not detected until after deployment.”36 It further
knew that “errors, defects or performance problems in our software” and “improper deployment
or configuration of our solutions” could affect the delivery, availability, and performance of its
Falcon platform.37
31
Id.
32
See Jacob Garrison, How to Secure Business-Critical Applications, CROWDSTRIKE (Feb. 9,
2024), https://www.crowdstrike.com/blog/how-to-secure-business-critical-applications/.
33
Shweta Sharma, CrowdStrike was not the only security vendor vulnerable to hasty testing,
CSO ONLINE (July 29, 2024), https://www.csoonline.com/article/3478372/crowdstrike-was-not-
the-only-security-vendor-vulnerable-to-hasty-testing.html.
34
Id.
35
Form 10-K, CROWDSTRIKE (Mar. 6, 2024), https://ir.crowdstrike.com/static-files/29e71f45-
3c39-4c2c-9159-5e7bb9f3315b.
36
Id.
37
See id.
12
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50. The aviation sector is considered part of America’s critical infrastructure according
to the Cybersecurity and Infrastructure Security Agency.38 CrowdStrike knows its Falcon platform
51. CrowdStrike knew that the incapacitation of critical infrastructure systems, such as
the aviation sector, “would have a debilitating effect on the security and safety of [American]
citizens.”40 CrowdStrike also knew that “nearly all critical infrastructures rely heavily on cyber
52. CrowdStrike knew that “[a]irport and aircraft operators run complex networks of
IT and OT systems to move passengers and freight safely and efficiently across the United
States.”42 It also knew that disruption of airline information technology and operational technology
53. It is clear that the “tech providers that support infrastructure relied upon by the
public and private sectors bear a responsibility to protect our safety and security.”44 Therefore,
38
Transportation Systems Sector, CYBERSEC. & INFRASTRUCTURE SEC. AGENCY,
https://www.cisa.gov/topics/critical-infrastructure-security-and-resilience/critical-infrastructure-
sectors/transportation-systems-sector (last accessed Aug. 5, 2024).
39
E.g., Jamie Gale, Porter Airlines Consolidates Its Cloud, Identity and Endpoint Security with
CrowdStrike, CROWDSTRIKE (Apr. 18, 2024), https://www.crowdstrike.com/blog/porter-airlines-
consolidates-cybersecurity-with-crowdstrike/.
40
Shawn Henry, Critical Infrastructure: One More Thing to Give Thanks For — and Protect,
CROWDSTRIKE (Nov. 22, 2016), https://www.crowdstrike.com/blog/critical-infrastructure-one-
thing-give-thanks-protect/.
41
Id.
42
Cyber Resilience for the Airline Industry, CROWDSTRIKE, https://www.crowdstrike.com/wp-
content/uploads/2023/04/crowdstrike-cyber-resilience-for-airline-industry.pdf (last accessed
Aug. 5, 2024).
43
See id.
44
Heidi Boghosian, Opinion: The CrowdStrike outage shows the danger of depending on Big
Tech overlords, LA TIMES (July 23, 2024 12:07 PM),
https://www.latimes.com/opinion/story/2024-07-23/crowdstrike-outage-microsoft-tech-security.
13
Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 14 of 27
technology providers must prioritize security and reliability in their products “over other incentives
54. CrowdStrike, as a cybersecurity company, was and is well aware of the damage a
large-scale IT system outage would cause. CrowdStrike also knew of the risks of system failures
posed by software and software updates containing serious flaws, errors, invalid data, or bugs. It
knows that the “adverse effects of any service interruptions . . . may be disproportionately
heightened due to the nature of [its] business and the fact that [its] customers have a low tolerance
55. CrowdStrike failed to adequately and reasonably test or validate the July 19, 2024
update to ensure it did not contain any serious flaws, errors, invalid data, or bugs. Had CrowdStrike
developed, implemented, and maintained reasonable software development, testing, and validation
processes, procedures, or controls, it would have discovered the serious flaws, errors, invalid data,
or bugs in the July 19, 2024 update and prevented the CrowdStrike Outage from occurring.
56. For example, it is “a fairly standard practice to roll out updates gradually, letting
developers test for any major problems before an update hits their entire user base.”47 If
CrowdStrike had followed this industry-standard process, it would have discovered the flaws,
errors, invalid data, or bugs in the update, and would not have published and disseminated the
flawed update to all of its customers, including airlines48. This process would have prevented the
45
Jessica Lyons, US cybersecurity chief: Software makers shouldn’t lawyer their way out of
security responsibilities, THE REGISTER (Feb. 28, 2023 10:23 PM),
https://www.theregister.com/2023/02/28/cisa_easterly_secure_software/.
46
Form 10-K, supra note 35.
47
Warren, supra note 1.
48
See id.
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57. The CrowdStrike Outage was entirely foreseeable, especially in light of other recent
software problems that have similarly affected consumers. For example, in January, 2023, a
damaged database file forced the FAA to impose a nationwide ground stop, which delayed more
than 10,000 flights and resulted in over 1,300 flights being cancelled.49 In April, 2023, Southwest
technical issue forced Southwest Airlines to ground 1,820 flights nationwide.51 In 2010, an error
in a security update for McAfee’s corporate antivirus software caused Windows computers around
58. These and other similar events illustrate why it is “absolutely critical” that vendors
supplying software updates or patches “thoroughly test [them] to ensure that those updates are not
59. CrowdStrike knew or should have known of these and other similar instances of
software and IT system failures, and CrowdStrike knew or should have known that publishing and
49
David Shepardson et al., Airlines hope for return to normal Thursday after FAA outage snarls
U.S. travel, REUTERS (Jan. 11, 2023 8:28 PM), https://www.reuters.com/business/aerospace-
defense/us-faa-says-flight-personnel-alert-system-not-processing-updates-after-outage-2023-01-
11/.
50
See Allison Lampert & Rajesh Kumar Singh, Southwest network failure raises concerns over
system’s strength, REUTERS (Apr. 20, 2023 5:00 AM),
https://www.reuters.com/business/aerospace-defense/southwest-network-failure-raises-concerns-
over-systems-strength-2023-04-19/.
51
Stefanie Schappert, Southwest Airlines forced to ground all US flights – again, CYBERNEWS
(Apr. 19, 2023 6:52 AM), https://cybernews.com/news/southwest-airlines-technical-issues-
flights-grounded-again/.
52
David Kravets, McAfee Probing Bungle That Sparked Global PC Crash, WIRED (Apr. 22,
2010 1:24 PM), https://www.wired.com/2010/04/mcafeebungle/; Declan McCullagh, Buggy
McAfee update whacks Windows XP PCs, CNN (Apr. 22, 2010 11:24 AM),
https://www.cnn.com/2010/TECH/04/22/cnet.mcafee.antivirus.bug/index.html.
53
Sharma, supra note 33.
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dissemination a software update for its Falcon platform containing serious flaws, errors, invalid
60. The CrowdStrike Outage had major impacts on air travel within the United States
and internationally. Airlines were hit “particularly hard” by the CrowdStrike Outage due to the
61. A statement by United Airlines indicated the CrowdStrike outage “affected many
separate systems, such as those used for calculating aircraft weight, checking in customers, and
phone systems in our call centers.”55 Plaintiffs and Class members “faced delays, cancellations
and problems checking in as airports and airlines” were ground to a halt by the CrowdStrike
Outage.56
62. According to the Federal Aviation Administration, “several U.S. carriers, including
American Airlines, United Airlines, and Delta Air Lines, issued ground stops for all their flights
early on” Friday, July 19, 2024, due to the CrowdStrike Outage.57 By approximately 8:40 PM ET
on Friday, July 19, 2024, over 3,000 flights had been canceled and over 11,000 flights had been
54
Zach Wichter et al., 2,600+ US flights canceled: United, American Airlines resume service
after global outage, USA Today (July 19, 2024 5:18 PM),
https://www.usatoday.com/story/travel/news/2024/07/19/global-it-outage-flights-canceled-
delayed/74466125007/.
55
Zach Wichter et al., 1,600+ US flights canceled Saturday: United, Delta still working to
recover from outage, USA TODAY (July 20, 2024 9:02 AM),
https://www.usatoday.com/story/travel/airline-news/2024/07/20/flight-canceled-delta-
united/74481266007/.
56
Wichter et al., supra note 54.
57
See id.
16
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delayed.58 Reports indicate that in total over 46,000 flights were delayed and 5,171 flights were
63. The CrowdStrike Outage was not quickly resolved. Over 1,600 flights were
canceled, and more than 4,900 flights were delayed by 3:00 PM ET on the following Saturday,
July 20, 2024.60 By Monday, July 22, 2024, Delta alone had canceled over 4,400 flights due to
64. Plaintiffs and Class members are individuals whose flights were canceled or
65. Plaintiffs and all other Class members have suffered injury and damages including,
but not limited to: (i) lost time incurred by delayed and canceled flights, (ii) interruption to their
freedom of movement and physical consequences associated with travel interruption, and (iii) lost
time and money spent attempting to mitigate and remediate the effects of the CrowdStrike Outage.
CLASS ALLEGATIONS
66. This action is brought and may be properly maintained as a class action pursuant to
67. Plaintiffs bring this action on behalf of themselves and all members of the following
58
CNN Staff, Flight cancellations across the US tops 3,000, CNN (July 19, 2024 7:51 PM),
https://www.cnn.com/business/live-news/global-outage-intl-hnk/index.html.
59
Geoff Whitmore, The CrowdStrike Outage Is Still Impacting Airlines, Forbes (July 22, 2024
11:24 AM), https://www.forbes.com/sites/geoffwhitmore/2024/07/22/the-crowdstrike-outage-is-
still-impacting-airlines/.
60
CNN Staff, supra note 58.
61
Zoe Sottile et al., Hundreds of US flights are canceled for the 4th straight day. Here’s the
latest on the global tech outage, CNN (July 22, 2024 8:27 PM),
https://www.cnn.com/2024/07/22/us/microsoft-power-outage-crowdstrike-it/index.html.
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 18 of 27
All United States citizens who had a flight delayed or canceled as a result of the
CrowdStrike Outage.
68. Plaintiffs also bring this action on behalf of themselves and all members of the
following subclasses:
California Subclass:
All California citizens who had a flight delayed or canceled as a result of the
CrowdStrike Outage.
Ohio Subclass:
All Ohio citizens who had a flight delayed or canceled as a result of the
CrowdStrike Outage.
Pennsylvania Subclass
All Pennsylvania citizens who had a flight delayed or canceled as a result of the
CrowdStrike Outage.
69. Excluded from the Class are CrowdStrike, Inc., and its affiliates, parents,
subsidiaries, officers, agents, and directors, as well as the judge(s) presiding over this matter and
Plaintiffs can prove the elements of their claims on a class-wide basis using the same evidence as
would be used to prove those elements in individual actions alleging the same claims.
71. The members in the Class are so numerous that joinder of all Class members in a
single proceeding would be impracticable. Reports indicate as many as 46,000 flights were delayed
and 5,171 flights were cancelled one the first day of the CrowdStrike Outage alone, likely affecting
millions of individuals.62
62
See Whitmore, supra note 59.
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72. Common questions of law and fact exist as to all Class members and predominate
over any potential questions affecting only individual Class members. Such common questions of
e. Whether Plaintiffs and Class members are entitled to damages and the measure of
such damages and relief.
73. Defendant engaged in a common course of conduct giving rise to the legal rights
sought to be enforced by Plaintiffs, on behalf of themselves and all other Class members.
Individual questions, if any, pale in comparison in both quantity and quality to the numerous
74. Plaintiffs’ claims are typical of the claims of the Class. Plaintiffs, like all proposed
members of the Class, experienced flight delays or cancellations as a result of the CrowdStrike
Outage. Plaintiffs and Class members were injured by the same wrongful acts, practices, and
omissions committed by Defendant, as described herein. Plaintiffs’ claims therefore arise from the
same practices or course of conduct that give rise to the claims of all Class members.
75. Plaintiffs will fairly and adequately represent the interests of the Class members.
Plaintiffs have retained counsel with substantial experience and success in the prosecution of
complex consumer protection class actions of this nature. Plaintiffs have no interests adverse to,
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 20 of 27
or that conflict with, the Class they seek to represent. Plaintiffs and their counsel have adequate
76. A class action is superior to any other available means for the fair and efficient
adjudication of this controversy, and no unusual difficulties are likely to be encountered in the
management of this class action. The damages and other financial detriment suffered by Plaintiffs
and all other Class members are relatively small compared to the burden and expense that would
be required to individually litigate their claims against Defendant, so it would be impracticable for
Class members to individually seek redress from Defendant’s wrongful conduct. Even if Class
members could afford individual litigation, the court system could not. Individualized litigation
creates a potential for inconsistent or contradictory judgments, and increases the delay and expense
to all parties and the court system. By contrast, the class action device presents far fewer
management difficulties and provides the benefits of single adjudication, economy of scale, and
CAUSES OF ACTION
COUNT I
NEGLIGENCE
77. Plaintiffs reallege and incorporate by reference all preceding paragraphs as if fully
78. Defendant owed a duty to Plaintiffs and all other Class members to exercise
reasonable care in in maintaining, operating, and updating its software products, including a duty
to detect and prevent the publication and dissemination of software or a software update containing
serious flaws, errors, invalid data, or bugs. Defendant also owed a duty to Plaintiffs and all other
Class members to ensure its software and software updates would not cause widespread computer
network and IT system outages and interfere with Plaintiffs’ and Class members’ ability to travel.
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 21 of 27
79. Defendant knew, or should have known, the risks of failing to exercise reasonable
care in maintaining and operating its software products, and by failing to design, adopt, implement,
control, direct, oversee, manage, monitor, and audit appropriate software development, testing,
and validation systems, processes, controls, policies, procedures, and protocols to prevent a
software update containing serious flaws, errors, invalid data, or bugs from being published and
disseminated.
80. Defendant knew, or should have known, that publishing and disseminating a
software update containing serious flaws, errors, invalid data, or bugs would cause its customers’
computer networks and IT systems to experience outages. Defendant also knew or should have
known that the resulting computer network and IT system outages would have widespread impact
81. Defendant knew that its Falcon platform is used in critical infrastructure, including
the aviation sector. Defendant knew that airlines rely on their IT systems and computer networks
to operate. Defendant knew, or should have known, that a large-scale IT system outage would
82. Given the nature of Defendant’s business, the sensitivity and value of the systems
that use the Falcon platform, and the resources at their disposal, Defendant should have identified
the vulnerabilities in its software development, testing, and validation systems, processes, controls,
policies, procedures, and protocols, and prevented the CrowdStrike Outage from occurring.
maintaining and operating their software products, and by failing to design, adopt, implement,
control, direct, oversee, manage, monitor, and audit appropriate software development, testing,
and validation systems, processes, controls, policies, procedures, and protocols to prevent a
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 22 of 27
software update containing serious flaws, errors, invalid data, or bugs from being published and
disseminated.
84. It was, or should have been, reasonably foreseeable to Defendant that its failure to
exercise reasonable care in publishing and disseminating a software update containing serious
flaws, errors, invalid data, or bugs by failing to design, adopt, implement, control, direct, oversee,
manage, monitor, and audit appropriate software development, testing, and validation systems,
processes, controls, policies, procedures, and protocols would result in widespread computer
network and IT system outages that would cause many flights to be delayed or cancelled.
85. But for Defendant’s negligent conduct or breach of the above-described duties
owed to Plaintiffs and Class members, the CrowdStrike Outage would not have occurred, and
ordinary care that directly and proximately caused the CrowdStrike Outage, Plaintiffs and all other
Class members have suffered, and will continue to suffer, economic damages and other injury and
actual harm in the form of, inter alia: (i) lost time incurred by delayed and canceled flights, (ii)
interruption to their freedom of movement and physical consequences associated with travel
interruption, and (iii) lost time and money spent attempting to mitigate and remediate the effects
COUNT II
VIOLATIONS OF THE CALIFORNIA UNFAIR COMPETITION LAW
Cal. Bus. & Prof. Code §§ 17200 et seq. (“UCL”)
On behalf of the California Subclass
87. Plaintiffs reallege and incorporate by reference all preceding paragraphs as if fully
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 23 of 27
88. The UCL prohibits any “unlawful” or “unfair” business act or practice, as those
terms are defined by the UCL and relevant case law. By virtue of the above-described wrongful
actions, inaction, and want of ordinary care that directly and proximately caused the CrowdStrike
Outage, CrowdStrike engaged in unlawful and unfair practices within the meaning, and in violation
business practices by, inter alia, knowingly failing to exercise reasonable care in maintaining and
operating their software products, and by failing to design, adopt, implement, control, direct,
oversee, manage, monitor, and audit appropriate software development, testing, and validation
systems, processes, controls, policies, procedures, and protocols to prevent a software update
containing serious flaws, errors, invalid data, or bugs from being published and disseminated.
90. Plaintiffs and Class members reserve the right to allege other violations of law by
described wrongful actions, inaction, and want of ordinary care are ongoing and continue to this
date.
and practices also constitute “unfair” business acts and practices in violation of the UCL in that its
policy, and is immoral, unethical, oppressive, and unscrupulous. The gravity of CrowdStrike’s
wrongful conduct outweighs any alleged benefits attributable to such conduct. There were
reasonably available alternatives to further CrowdStrike’s legitimate business interests other than
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 24 of 27
92. The injury and harm that Plaintiffs and Class members suffered was the direct and
proximate result of CrowdStrike’s violations of the UCL. Plaintiffs and Class members have
suffered (and will continue to suffer) economic damages and other injury and actual harm in the
form of, inter alia: (i) lost time incurred by delayed and canceled flights, (ii) interruption to their
freedom of movement and physical consequences associated with travel interruption, and (iii) lost
time and money spent attempting to mitigate and remediate the effects of the CrowdStrike Outage.
93. Unless restrained and enjoined, CrowdStrike will continue to engage in the above-
described wrongful conduct and more outages will occur. Plaintiffs, therefore, on behalf of
themselves, Class members, and the general public, also seek restitution and an injunction
prohibiting CrowdStrike from continuing such wrongful conduct, and requiring CrowdStrike to
modify its corporate culture and design, adopt, implement, control, direct, oversee, manage,
monitor, and audit appropriate software development, testing, and validation systems, processes,
controls, policies, procedures, and protocols to prevent the publication and dissemination or
additional software updates containing serious flaws, errors, invalid data, or bugs, as well as all
other relief the Court deems appropriate, consistent with Bus. & Prof. Code § 17203.
COUNT III
PUBLIC NUISANCE
On behalf of the Ohio Subclass and Pennsylvania Subclass
94. Plaintiffs reallege and incorporate by reference all preceding paragraphs as if fully
95. Members of the general public, including Plaintiffs and Class members, have the
right to travel freely, including the right to travel freely between states.
96. At all relevant times, CrowdStrike owned the Falcon platform and related software
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 25 of 27
97. As described herein, CrowdStrike’s actions and lack of ordinary care, including its
use of the Falcon platform and its software development, testing, and validation systems,
processes, controls, policies, procedures, and protocols proximately caused the CrowdStrike
Outage. The CrowdStrike Outage in turn directly caused many airlines to cancel or delay thousands
of flights.
98. Plaintiffs and Class members are persons who were traveling by plane and who had
flights delayed or cancelled as a result of the CrowdStrike Outage. Due to the CrowdStrike Outage,
99. CrowdStrike’s wrongful conduct and want of ordinary care therefore created a
public nuisance in the form of the CrowdStrike Outage, which substantially interfered with and
inhibited the ability of members of the public (including Plaintiffs and Class members) to exercise
100. As a result of the CrowdStrike Outage, a public nuisance, Plaintiffs and all other
Class members have suffered injury and damages including, but not limited to: (i) lost time
incurred by delayed and canceled flights, (ii) interruption to their freedom of movement and
physical consequences associated with travel interruption, and (iii) lost time and money spent
Plaintiffs, individually and on behalf of all other members of the Class, respectfully
requests that the Court enter judgment in his favor and against Defendant as follows:
B. Awarding Plaintiffs and the Class appropriate monetary relief, including actual
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 26 of 27
C. Awarding Plaintiffs and the Class equitable, injunctive, and declaratory relief,
as may be appropriate. Plaintiffs, on behalf of themselves and the Class, seek appropriate
injunctive relief designed to prevent Defendant from causing another technology outage by
adopting and implementing best software development and testing practices to protect against
future outages;
E. Awarding Plaintiffs and the Class reasonable attorneys’ fees, costs, and
F. Awarding Plaintiffs and the Class such other favorable relief as allowable under
law.
Plaintiffs demand a trial by jury of all claims in this Class Action Complaint so triable.
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Case 1:24-cv-00881-RP Document 1 Filed 08/05/24 Page 27 of 27
Ben Barnow*
Anthony L. Parkhill*
BARNOW AND ASSOCIATES, P.C.
205 West Randolph Street, Ste. 1630
Chicago, IL 60606
Tel: 312-621-2000
Fax: 312-641-5504
[email protected]
[email protected]
27
JS 44 (Rev. 04/21) Case 1:24-cv-00881-RP Document
CIVIL COVER1-1 Filed 08/05/24 Page 1 of 1
SHEET
The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as
provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the
purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
I. (a) PLAINTIFFS DEFENDANTS
Julio del Rio, Jack Murphy, and Steven Bixby, CrowdStrike, Inc.
(b) County of Residence of First Listed Plaintiff Los Angeles County County of Residence of First Listed Defendant
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.
(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)
II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)
1 U.S. Government 3 Federal Question PTF DEF PTF DEF
Plaintiff (U.S. Government Not a Party) Citizen of This State 1 1 Incorporated or Principal Place 4 ✖ 4
of Business In This State
2 U.S. Government 4 Diversity Citizen of Another State ✖ 2 2 Incorporated and Principal Place 5 5
Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State