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Delta sues CrowdStrike over outages resulting in 0 million losses
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Delta sues CrowdStrike over outages resulting in $500 million losses

Delta Air Lines filed a lawsuit against the cybersecurity giant Crowd strike Friday, seeking massive damages for a catastrophic technological failure that crippled the carrier’s operations this summer and led to losses exceeding $500 million.

The lawsuit, filed in Fulton County Superior Court near Deltaat the Atlanta headquarters, stems from a July incident when a faulty CrowdStrike software update triggered widespread system outagesincluding the famous “blue screen of death” on Windows computers worldwide, according to Associated Press.

Delta lawsuit alleges cybersecurity company’s negligence in deploying untested version Microsoft The IT update resulted in the cancellation of around 7,000 flights over five days during the peak summer season. The airline is seeking both compensatory and punitive damages, saying the company’s actions caused widespread disruption during one of the busiest travel periods of the year.

The impact of the July incident extended far beyond aviation, affecting emergency services in six states, including AlaskaArizona, Indiana, Minnesota, New Hampshire and Ohio.

The outage also disrupted major financial institutions, with the London Stock Exchange reporting that its regulatory information service had experienced “global third-party technical issues.” Several Australian banks have also reported operational problems. The media has also felt the impact, with UK channels Sky News and BBC channels temporarily banned from broadcasting.

CEO of CrowdStrike George Kurtz confirmed that the outage was the result of a “flaw detected in a single content update for Windows hosts” rather than a security breach or cyberattack.

Microsoft acknowledged the issue on its platform, stating that “the affected update has been removed by CrowdStrike” and directing affected customers to seek further support from the cybersecurity company.

In response to the lawsuit, a CrowdStrike spokesperson said News week: “As we sought to achieve a business solution that puts customers first, Delta chose a different path. Delta’s claims are based on disproven misinformation, demonstrate a lack of understanding of how modern cybersecurity works and reflect a desperate attempt to blame customers for its slow recovery following its failure to modernize its antiquated IT infrastructure.

Delta collective strike
Travelers line up on the check-in floor of the Delta Air Lines terminal at Los Angeles International Airport (LAX) on July 23, 2024 in Los Angeles, California. Delta Air Lines is still in shock…


News week contacted Delta Airlines by email Saturday for comment.

CrowdStrike stock fell more than 20% in early trading after the July outage, falling from $343.05 to $273 before recovering slightly to $301.97 per share. Microsoft shares also suffered, falling more than 3% to $426 before stabilizing at $434.80 during the peak summer travel season.

Previous attempts to resolve the dispute have failed. The cybersecurity company’s legal team had suggested in August that the company’s liability to Delta should not exceed $10 million – a figure that stands in stark contrast to the airline’s reported losses of more than $500 million. in lost income and additional expenses.

THE US Department of Transportation (DOT) has launched an investigation into Delta’s significantly slower recovery compared to other affected organizations.

Transportation Secretary Pete Buttigieg announced that the investigation would look into customer service complaints, including reports of stranded unaccompanied minors and excessive wait times for help during the crisis.