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Crowdstrike isn’t a company anymore, this is probably their end. The litigation will be death by thousand cuts.
by iwontberude 2y ago
Crowdstrike isn’t a company anymore, this is probably their end. The litigation will be death by thousand cuts.
- t0mas88 2y agoHas anyone looked into their terms and conditions? Usually any resulting damage from software malfunctioning is excluded. Only the software itself being unavailable may be an SLA breach. Typically there would also be some clauses where CS is the only one that is allowed to determine an SLA breach, SLA breaches only result in future licence credits no cash, and if you disagree it's limited to mandatory arbitration... The biggest impact is probably only their reputation taking a huge hit. Loosing some customers over this and making it harder to win future business.
- iwontberude 2y agoThey will still need to hire lawyers to prove this. Thousands of litigants. I am sure there is some tort which is not covered by the arbitration agreement that would give plaintiff standing no? Commenter on stack exchange had an interesting counter: In some jurisdictions, any attempt to sidestep consumer law may be interpreted by the courts as conspiracy, which can prove more serious than merely accepting the original penalties.
- chii 2y ago> Thousands of litigants i would imagine a class action suit instead of individual cases if this were to happen.
- iwontberude 2y agoPotentially we will see some, but this occurred in many jurisdictions across the world.
- disgruntledphd2 2y agoThey'll be sued by the insurance companies probably.
- clwg 2y agoNo big company is going to agree to the terms and conditions that are listed on their website, they'll have their own schedules for indemnification that CS would agree to, not the other way around. Those 300 of the Fortune 500 companies are going to rip CS apart.
- ragingroosevelt 2y agoIsn't it common for TOCs to not apply in cases of negligence? It seems possible that's the direction that lawsuits could go?
- joelthelion 2y agoThe stock market disagrees: https://www.google.com/finance/quote/CRWD:NASDAQ?window=5Y https://www.google.com/finance/quote/CRWD:NASDAQ?window=5Y To be clear, I feel investors are a bit delusional, I just thought it was an interesting perspective to share.
- asynchronous 2y agoThey really are delusional, as a security person crowdstrike was overvalued before this event, and to everyone in tech this shows how bad their engineering practices are.
- chii 2y agobut they are able to insert themselves into this many enterprise machines! So regardless of your security credentials, they made good business decisions. On the other hand, this may open the veil for a lot of companies to dump them.
- bni 2y agoFor another similar product from a competitor that there is no reason to believe are any better.
- Osiris 2y agoWow. Cause a global meltdown and only lose 18% of your stock value? They must be doing something that investors like.
- imtringued 2y agoThey are probably pivoting to charging ransoms aka "consulting fees" to fix crashing systems and those are priced in.
- aflag 2y agoThe stock market only had a day to react and they were also heavily affected by the issue. Let's see where the stock price goes in the following week.
- markus_zhang 2y agoI'd bet $100 that Crowdstrike won't pay out more than $100m for that dozens of billions of damage.
- ai4ever 2y agosoftware vendors should be required to face consequences of shipping a poor product. one possibility is: clawback or refunds for past payments equal to business damage caused by the flawed product.
- hypeatei 2y agoI would say the companies compelling others to buy and install this shitty security software, e.g. cyber insurance, should also be punished.