Alphabet’s CapitalG Fund Cuts CrowdStrike Stake Ahead of July Global Outage

:Independent growth fund CapitalG, owned by Google subsidiary Alphabet, has reduced its stake in cybersecurity firm CrowdStrike, according to regulatory filings on Friday, well before last month’s global outage triggered by a software update.

The fund reduced its holding to 427,895 Class A shares from 855,789 shares. The change in holding occurred on June 30.

CrowdStrike did not immediately respond to Reuters’ request for comment.

The worldwide technical outage that occurred on July 19 following a CrowdStrike software update paralyzed computer systems around the world, affecting sectors such as healthcare, banking and aviation.

CrowdStrike shares have lost nearly 35% of their value since the outage as investors reconsider their security strategies and regulators debate whether it is safe to keep complex and critical software in the hands of a large company.

The company was sued by shareholders on Wednesday for misleading and false claims about its software that caused a global outage.

Delta’s CEO told CNBC earlier this week that the outage had cost the airline $500 million and that the company had hired a law firm to seek damages from Microsoft and CrowdStrike.