Class Action Suit on CrowdStrike Over ’24 Outage Dismissed

A federal court in Texas has dismissed a class-action lawsuit against cybersecurity giant CrowdStrike after a software outage in July 2024 caused tens of thousands of flight delays and cancellations throughout the country.

The plaintiffs in the lawsuit claimed that CrowdStrike made false and misleading statements to investors about the possibility of a major information technology outage, which it said led to more than 46,000 flight delays and 5,100 cancellations in the U.S. on July 19, 2024.

But the U.S. District Court for the Western District of Texas in Austin granted the company’s motion to dismiss the lawsuit Wednesday, Bloomberg Law reported, by ruling that travelers seeking compensation for expenses incurred by the delays, such as booking hotel rooms and new flights, are preempted by the federal Airline Deregulation Act of 1978, as they would be if travelers had sued the airlines directly.

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