In a surprising turn of events following a major IT disruption caused by a software update, CrowdStrike has taken a bold approach to managing the fallout. Instead of shying away from the spotlight, 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 led to widespread disruptions for Microsoft customers, affecting airlines, banks, hospitals, and emergency services around the globe. The incident caused severe operational interruptions and customer inconvenience, with the infamous Blue Screen of Death appearing on thousands of Windows machines. The outage has been linked to CrowdStrike, whose valuation plummeted from over $83 billion to just under $60 billion since the incident.

Amidst this turmoil, CrowdStrike’s unexpected recognition at the Pwnie Awards came as a surprise. The company had previously made a notable appearance at Black Hat, showcasing a prominent booth and distributing free merchandise. A CrowdStrike spokesperson noted that their presence at the event was a gesture of gratitude to the community.

At the awards ceremony, Sentonas addressed the severity of the situation, stating, “Definitely not the award to be proud of receiving, but I was determined to accept it because we got this horribly wrong.” He emphasized the importance of accountability, declaring that the award would be displayed at the company’s headquarters. “I want every CrowdStrike employee to see it, as a reminder that our goal is to protect people and to ensure such failures do not recur.”

The company is now facing mounting legal challenges, including a proposed class action lawsuit filed in federal court in Austin, Texas, by three air travellers. The plaintiffs allege that CrowdStrike’s negligence in the software update led to significant flight delays and cancellations, incurring additional costs for lodging, meals, and alternative travel arrangements. Some travellers also reported missing work and health issues from prolonged airport stays. The plaintiffs seek both compensatory and punitive damages, citing previous technology-related disruptions in the airline industry.

In response to the lawsuit, CrowdStrike has maintained its defense, asserting, “We believe this case lacks merit and we will vigorously defend the company.” This stance is also reflected in their response to a separate shareholder lawsuit filed on July 31, following a dramatic drop in the company’s stock price—approximately one-third—due to the outage.