Business Losses Caused by the CrowdStrike Outage Become a Major Concern for Countless Companies

Console and Associates, P.C.
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On July 19, 2024, CrowdStrike, a cybersecurity and technology company based in Austin, Texas, experienced a major global outage with far-reaching implications. As a result of the CrowdStrike outage, businesses in certain industries were essentially crippled. For example, approximately 5,078 flights, or 4.6% of all scheduled flights, were canceled, and another 45,000 flights were delayed. Additionally, many financial institutions and payroll companies faced challenges in maintaining normal operations, which led to delays in carrying out necessary transactions.

Under U.S. business and contract law, those organizations that were adversely affected by the CrowdStrike outage may have a legal claim against CrowdStrike for losses incurred as a result of the outage. Console & Associates, P.C., is investigating claims of potential business losses caused by the CrowdStrike outage. Those interested in learning more about a possible CrowdStrike lawsuit can review our recent piece on the topic, here.

The Impact of the CrowdStrike Outage

On July 19, 2024, a configuration update released by CrowdStrike triggered a logic error in their Falcon sensor for Windows systems. This error resulted in a system crash (“BSOD”) across approximately 8.5 million devices globally​. For many businesses, this meant that critical IT infrastructure became inoperable, leading to immediate downtime procedures and halted operations.

The outage affected various aspects of many daily business activities, including:

Employee Productivity: With systems down, employees may not have been able to access the tools and resources necessary to carry out their jobs, leading to a significant drop in productivity.

Customer Service: If a business relies on IT systems for customer interactions, the outage may have disrupted communication channels, leading to delayed responses and potential customer dissatisfaction.

Financial Transactions: The financial sector faced some of the largest challenges in maintaining normal operations, with some businesses reporting delayed transactions and other financial processes​.

Which OS Are Impacted by the CrowdStrike Outage?

The outage impacted systems running Falcon sensor for Windows version 7.11 and above, causing approximately 8.5 million devices worldwide to crash and become inoperable. The issue was isolated to Windows systems; macOS and Linux systems were unaffected.

More Information About CrowdStrike

CrowdStrike Holdings, Inc. is a cybersecurity and technology company based in Austin, Texas, that provides threat intelligence, endpoint security, and cyber attack response services. CrowdStrike employs more than 8,429 people and generates approximately $3.3 billion in annual revenue.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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