Aug 9, 2024, 2:57 AM
Aug 9, 2024, 2:57 AM

Delta Airlines Seeks $500M from CrowdStrike and Microsoft

Highlights
  • Delta Airlines is planning to sue CrowdStrike and Microsoft for $500 million.
  • The airline claims it suffered significant damages due to cybersecurity issues.
  • This legal action highlights the growing tensions between major corporations regarding accountability for cyber incidents.
Story

Delta Airlines has publicly criticized cybersecurity firm CrowdStrike in a letter dated Thursday, following a significant global network outage that occurred last month. The airline claims that the outage, which it attributes to CrowdStrike's "negligence," forced it to cancel thousands of flights and resulted in financial losses exceeding $500 million. The incident, which began on July 19 due to a corrupted software update from CrowdStrike, left Delta's operations severely impacted for several days, even as other airlines resumed normal services. In response to Delta's accusations, CrowdStrike has denied sole responsibility for the disruptions, noting that Delta's issues persisted longer than those of its competitors. Delta's CEO, Ed Bastian, described the situation as “unacceptable” in a filing with the US Securities and Exchange Commission, and the airline has threatened legal action against both CrowdStrike and Microsoft. CrowdStrike has stated it will defend itself vigorously if legal proceedings are initiated. Microsoft has also indicated it will contest any claims, suggesting that Delta's outdated IT infrastructure may have contributed to its prolonged recovery. Delta's attorney, David Boies, countered these claims, asserting that the airline had invested significantly in its technology and was not at fault for the software failure. Meanwhile, Delta faces its own legal challenges from passengers affected by the cancellations, while CrowdStrike is facing a lawsuit from its shareholders over alleged misleading statements regarding its software testing practices.

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