A federal judge in Texas has dismissed a lawsuit filed by CrowdStrike shareholders who claimed the cybersecurity company misled investors by concealing deficiencies in its software testing and quality assurance processes prior to a July 2024 outage that affected more than 8 million Microsoft Windows-based computers worldwide.

In a ruling made public Tuesday, U.S. District Judge Robert Pitman in Austin said the shareholders did not plausibly allege that statements by CrowdStrike or its executives—made in regulatory filings, earnings calls, and on the company website—were materially false or misleading, or motivated by an intent to defraud.

The lawsuit, led by New York State Comptroller Thomas DiNapoli, alleged that CrowdStrike lacked formal test plans and a quality assurance team, citing former employees, and that executives prioritized “speed over everything else” to maximize profits. While Pitman noted two questionable statements regarding adherence to federal security requirements, including those from the Department of Defense, he concluded the plaintiffs had not sufficiently established a strong inference of fraudulent intent.

DiNapoli, who manages the $291.4 billion New York State Common Retirement Fund, one of the largest U.S. public pension funds, may amend the complaint. A spokesman for the comptroller said the decision is “under review.” CrowdStrike’s chief legal officer, Cathleen Anderson, said, “We appreciate the court’s thoughtful consideration and decision to dismiss this case.”

The July 19, 2024, outage was triggered by a flawed update to CrowdStrike’s Falcon software and disrupted airlines, banks, hospitals, and 911 emergency lines. CrowdStrike’s share price subsequently dropped 32% over 11 days, erasing approximately $25 billion in market value.

Delta Air Lines was among the hardest hit, reporting losses of roughly $500 million and more than 7,000 canceled flights. The airline has also sued CrowdStrike, and a Georgia state judge allowed Delta to pursue most of its claims.

Separately, Pitman previously dismissed a related lawsuit brought by airline passengers affected by the outage. That decision is currently under appeal in the federal court of appeals in New Orleans.

This ruling represents a temporary setback for shareholders seeking accountability, but legal proceedings related to corporate liability for the 2024 outage continue on multiple fronts.