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Breaking: Beyond Headlines!

Delta continues public strike following July IT outage that affected thousands of flights
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Delta continues public strike following July IT outage that affected thousands of flights

Key takeaways

  • Delta Airlines is suing Crowdstrike over a software update the cybersecurity company made in July that caused massive disruption.
  • The outage, which affected millions of Microsoft computers, led to flight cancellations or delays for more than a million customers.
  • Delta estimates the outage cost it $500 million, in addition to lost future revenue and damage to its reputation.
  • This legal action comes after months of finger-pointing, during which Microsoft and Crowdstrike criticized Delta’s handling of the situation and its refusal to accept offers of help.

Delta Airlines (DAL) is suing cybersecurity company Crowdstrike Inc. (CRWD) due to a faulty software update in July that disrupted its operations and affected more than a million customers.

In a lawsuit Friday, Delta said the software update that affected Microsoft Windows Systems (MSFT) on the world was “catastrophic” for the company, leading to days of canceled or delayed flights. Airlines say the debacle it cost him $500 millionas well as loss of future income and a damaged reputation.

The complaint alleges breach of contract, gross negligence, and intentional misrepresentation or fraud by omission on the part of Crowdstrike.

Delta, which was among the companies hardest hit by the outage, filed the lawsuit after months of point a finger among the three companies. Previously, Crowdstrike and Microsoft had criticized Delta management of the situation, saying the airline had refused offers of help.

“As we sought to reach a business resolution that puts customers first, Delta chose a different path,” a CrowdStrike spokesperson told 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modern cybersecurity works, and reflect a desperate attempt to blame its slow recovery on its failure to modernize its outdated IT infrastructure.”