'We got it wrong': CrowdStrike President accepts 'Most Epic Fail' award after global Microsoft outage (WATCH)

CrowdStrike's president, Michael Sentonas, recently accepted the "Most Epic Fail" award at the Pwnie Awards, a gesture aimed at damage control following a significant Microsoft outage last month.

We got it wrong CrowdStrike President accepts 'Most Epic Fail' award after recent global Microsoft outage (WATCH) snt

Sunita Iyer

First Published Aug 12, 2024, 4:39 PM IST | Last Updated Aug 12, 2024, 4:39 PM IST

In a surprising move following a major IT disruption caused by a software update, cybersecurity firm CrowdStrike recently opted for a bold approach to manage the fallout. Instead of avoiding public attention, Michael Sentonas, the company's president, embraced the situation by accepting the "Most Epic Fail" award at the Pwnie Awards.

To recap, on July 19, a significant outage, triggered by a faulty software update, caused widespread disruptions for Microsoft customers, impacting airlines, banks, hospitals, and emergency services globally. The incident led to significant operational interruptions and customer inconvenience.

The global outage, which resulted in the infamous Blue Screen of Death appearing on thousands of Windows machines, has been traced back to one software company: CrowdStrike. Before the incident on July 19, CrowdStrike’s valuation exceeded $83 billion, but it has since dropped to just under $60 billion.

Amidst this turmoil, CrowdStrike’s unexpected recognition at the Pwnie Awards came as a surprise. This accolade followed their notable presence at Black Hat, where the company showcased a prominent booth and handed out free merchandise. A spokesperson for CrowdStrike conveyed that their participation at the event was meant to express gratitude and appreciation to the community.

Sentonas, addressing the audience at the awards ceremony, acknowledged the severity of the situation. "Definitely not the award to be proud of receiving, but I think the team was surprised when I said straightaway that I would come and get it because we got this horribly wrong," he admitted.

He stressed the importance of accountability, declaring that the award would be displayed at the company's headquarters. "I want every CrowdStrike who comes to work to see it because our goal is to protect people and we got this wrong. I want to make sure that everybody understands these things can't happen, and that's what this community is about."

The company now faces mounting legal challenges. A proposed class action lawsuit has been filed in federal court in Austin, Texas, by three air travelers who allege that CrowdStrike's negligence in the software update led to the disruptions. The plaintiffs claim that the outage caused flight delays and cancellations, forcing travelers to incur expenses on lodging, meals, and alternative travel arrangements. Some travelers also reported missing work and experiencing health issues from prolonged airport stays.

The plaintiffs argue that CrowdStrike should be held liable for both compensatory and punitive damages. They assert that the problems experienced were foreseeable, referencing previous technology-related flight groundings for Southwest Airlines and other carriers in 2023.

In response to the lawsuit, CrowdStrike has maintained its defense, stating, "We believe this case lacks merit and we will vigorously defend the company." This position is echoed in a statement regarding a separate shareholder lawsuit filed on July 31, following a substantial drop in the company's stock price—approximately one-third—due to the outage.

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