Latest cybersecurity reporting from selected sources.

Medtech Maker Is Still Recovering While Iranian Hackers Threaten More Attack VictimsAs medtech maker Stryker continues working to restore global IT systems brought offline by a cyberattack last week, class action lawsuits against the company are piling up in federal court and the Iranian hackers claiming credit for the attack are warning of more assaults to come on other victims.

Misstatement Claims Tossed in Class-Action Securities Case After CrowdStrike OutageA U.S. district judge tossed most claims from investors accusing CrowdStrike of misrepresenting its software testing rigor before a July 2024 outage. The judge said two statements about federal compliance could plausibly be misleading, but said plaintiffs failed to establish intent or recklessness.

Investors didn't present a valid claim, says judge, but they're welcome to try again A group of CrowdStrike shareholders who sued the company over losses sustained following its 2024 global outage will have to head back to the drawing board if they hope to recoup losses, as a Texas judge has deemed they failed to adequately state a claim.…

Georgia Court Allows Claims of Fraud, Trespass Over Falcon Software UpdateDelta can proceed with its lawsuit against CrowdStrike over a July 2024 update that allegedly bypassed Microsoft safeguards and crashed thousands of systems. The judge found that Delta sufficiently alleged fraud, computer trespass and gross negligence, allowing key claims to move forward.

Also: Iberian Blackout, Delta Faces Lawsuit Linked to CrowdStrike OutageEvery week, ISMG rounds up cybersecurity incidents and breaches around the world. This week: Mirai Botnet Exploits Flaws in GeoVision, the Iberian blackout under investigation, dueling cybersecurity advisories from India and Pakistan, Delta must face a lawsuit linked to CrowdStrike outage.

Vendor Blames Delta's Outage Severity on Its 'Own Response and IT Infrastructure'CrowdStrike has countersued customer Delta Air Lines, accusing the airline of employing a lawsuit and seeking damages in "a desperate attempt to shift blame" for Delta's own IT inadequacies having exacerbated its outage, unlike "other major airlines" that quickly resumed operations.

'We Don't Know How It's All Going to Shake Out,' Says CFO, 6 Weeks Post-OutageCybersecurity firm CrowdStrike has yet to see any lawsuits get filed against it by customers, following its July 19 faulty software update crashing systems worldwide. Does that speak to the company having run a well-executed crisis management strategy?

Following the July 19 outages caused by a bad update, the cybersecurity firm faces shareholder lawsuits and pressure to pay damages for at least one major customer, by Delta Airlines. Will software liability follow?

Cybersecurity company CrowdStrike has been sued by investors who say it provided false claims about its Falcon platform after a bad security update led to a massive global IT outage causing the stock price to tumble almost 38%. [...]

That horse has not just bolted, it's trampled all over kernel space CrowdStrike, after suggesting canary testing as a way to ensure it avoids future blunders leading to global computer outages, has been sued in federal court by investors for not using a phased approach in rolling out updates to customers in the first place.…

Company Makes Progress Restoring IT Services, But Disruption LingersAs recovery from its Feb. 21 cyberattack continues, Change Healthcare and its parent company UnitedHealth Group are facing a growing pile of lawsuits, while health sector entities affected by the IT services disruption are dealing with a mounting stack of bills and other paperwork to catch up on.

Lawsuit Claims Change Healthcare Outage Is Pushing Clinic, Others Into BankruptcyA Mississippi women's health clinic has filed a proposed class action lawsuit against UnitedHealth Group alleging the disruption in claims processing caused by the cyberattack on the company's Change Healthcare unit and the resulting IT outage is threatening to push the practice into bankruptcy.

Dish Network has been slapped with multiple class action lawsuits after it suffered a ransomware incident that was behind the company's multi-day "network outage." The legal actions aim to recover losses faced by DISH investors who were adversely affected by what has been dubbed a "securities fraud."  [...]

On December 7, 2021, Google announced it had sued two Russian men allegedly responsible for operating the Glupteba botnet, a global malware menace that has infected millions of computers over the past decade. That same day, AWM Proxy -- a 14-year-old anonymity service that rents hacked PCs to cybercriminals -- suddenly went offline. Security experts had long seen a link between Glupteba and AWM Proxy, but new research shows AWM Proxy's founder is one of the men being sued by Google.