CrowdStrike is being sued by its shareholders after a faulty software update by the cybersecurity firm crashed more than eight million computers and caused chaos globally.
The suit filed in the Austin, Texas federal court, alleges that CrowdStrike executives defrauded investors by making them believe the company's software updates were adequately tested.
The lawsuit is seeking an unspecified amount of compensation for investors who owned CrowdStrike shares between November 29 and July 29.
It also says the company's share price dropped 32 percent in the 12 days after the incident, causing a loss in market value of 25 billion dollars.
CrowdStrike denies the allegations and says it will defend itself against the proposed class action lawsuit.
Meanwhile, the US-based company stated on Monday that the outage had been fixed - ten days after the incident began.
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