The recent CrowdStrike outage had a devastating effect on businesses around Australia with many forced to stop operations for a day or longer resulting in massive economic losses. The question becomes who can be held responsible and what compensation can be payable.
CrowdStrike provides security software to many companies and organisations using Microsoft Windows on their devices. The software is subject to the CrowdStrike’s Terms and Conditions which regulate the relaationship with its clients by way of contract.
As with all software Terms and Conditions, there would be an exclusion clause limiting the liability of the provider of the software in case it causes any losses to their customer. Reportedly, CrowdStrike’s liability is limited to a refund of fees paid for the software!
Another possibility is a class action lawsuit against CrowdStrike for negligence for its botched update of its own software which caused the worldwide meltdown. This action would be separate to any claim for breach of contract.
Any class action would require a litigation lender to fund the case. It would be extremely complex and would take an number of years to unfold and come to a resolution. So, in conclusion, if you were affected, pay close attention to the media to see if a class action is being explored and see if you can take part. Apart from that, consider if you wish to continue your relationship with CrowdStrike. Once bitten!
July 2024