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Delta attacks CrowdStrike with $500 million lawsuit

Umito October 29, 2024

Several months after CrowdStrike update left millions of servers unusableleading to a temporary but costly shutdown of some industries, Delta Air Lines filed a lawsuit against the cybersecurity company to recoup some of its losses

The lawsuit, filed in a Georgia court, asks CrowdStrike to pay more than $500 million in losses, as well as court costs and punitive damages.

After canceling about 7,000 flights, Delta says it lost $380 million in revenue and incurred another $170 million in other costs, which it is now seeking to cover through legal action.

Delta sues CrowdStrike

“CrowdStrike has caused a global catastrophe because it cut corners, took shortcuts, and circumvented announced testing and certification processes, for its own benefit and profit,” a Delta announcement said.

News of the lawsuit comes after the company appointed David Boies, a leading attorney experienced in some high-profile cases seeking damages from CrowdStrike and Microsoft.

Talk with CNBCEd Bastian, CEO of Delta, said: “The devastation that has been created deserves, in my opinion, to be fully compensated. »

Following the incident, Delta was quick to offer its customers financial support in the form of refunds and refunds. The company acknowledged that CrowdStrike was responsible for the outage, but offered little further explanation to customers.

CrowdStrike CEO George Kurtz issued a public apology after the outage, promising to improve the company’s update protocols.

A CrowdStrike spokesperson responded to the matter (via CNBC): “Delta’s claims are based on misinformation, demonstrate a lack of understanding of how modern cybersecurity works, and reflect a desperate attempt to blame its slow recovery on its failure to modernize its antiquated IT infrastructure.”

It’s unclear how the case will play out, but since CrowdStrike’s questionable update is the cause of the problem, it’s likely that will guide the judge’s decision.

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Delta attacks CrowdStrike with $500 million lawsuit

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