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CrowdStrike Faces a Potential Tsunami of Lawsuits. Only the Fine Print Can Save It, Experts Say

After crashing millions of computers and disrupting businesses across the globe, cybersecurity company CrowdStrike must protect itself against a flurry of legal activity that is already beginning. The devil will be in the details.

Those hoping to recover financial losses will need to find creative ways to frame their cases against CrowdStrike, which is insulated to a great extent by clauses typical of software contracts that limit its liability, Cardi says. “It’s going to hinge on the peculiarities of the individual contractual arrangements that one business has with another,” says Colm McGrath, senior lecturer in law at King’s College London and co-editor of the Journal of Professional Negligence. But when dealing with “big boy commercial entities,” says McGrath, courts are typically inclined to uphold the terms of any agreements that result from “hard-nosed negotiations with one another in clear understanding of the risks.”

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