CrowdStrike CEO George Kurtz To Testify Before Congress On Faulty Update Causing Global Disruptions

What Happened: The U.S. House of Representatives Homeland Security Committee has formally asked Kurtz to testify on the global tech outage that occurred last week, Reuters reported.

The outage was a result of a faulty update to CrowdStrike’s security software, which affected millions of devices running on Microsoft Corp‘s (NASDAQ:MSFT) Windows operating system.

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The congressional panel, in its letter to Kurtz, acknowledged CrowdStrike’s response and coordination with stakeholders but emphasized the gravity of the situation, which some have labeled as the most significant IT outage in history. The panel has asked Kurtz to schedule a hearing with the subcommittee by Wednesday.

“CrowdStrike is actively in contact with relevant Congressional Committees. Briefings and other engagement timelines may be disclosed at members’ discretion,” a company spokesperson said.

The outage has also raised concerns about CrowdStrike’s pricing and renewal strategies. The company’s stock faced further downgrades amid worries about its ability to retain customers and maintain competitive pricing following the disruption.

Price Action: Crowdstrike stock closed at $263.91 on Monday, down 13.46%. In after-hours trading, the stock dipped further 0.34%. Over the past five days, the stock has dropped by 30.23%. However, year to date, Crowdstrike has gained 6.89%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

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