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CROWDSTRIKE, DELTA SUE EACH OTHER OVER FLIGHT DISRUPTIONS

By David Shepardson
October 28, 20246:35 PM GMT+1Updated 2 days ago
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Passengers wait at Milwaukee Mitchell International Airport, after airlines
grounded flights due to a worldwide tech outage caused by an update to
CrowdStrike's "Falcon Sensor" software which crashed Microsoft Windows systems,
in Milwaukee, Wisconsin, U.S., July 19, 2024. REUTERS/Jennah Moon/File Photo
Purchase Licensing Rights, opens new tab
 * Companies

 * Delta Air Lines Inc
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WASHINGTON, Oct 28 (Reuters) - Cybersecurity firm CrowdStrike (CRWD.O), opens
new tab said on Monday it sued Delta Air Lines (DAL.N), opens new tab in U.S.
District Court in Georgia after a faulty software update prompted a global
outage in July.
The July 19 incident led to worldwide flight cancellations and hit industries
including banks, healthcare, media companies and hotel chains.
CrowdStrike said it sued to make clear that CrowdStrike did not cause the harm
that Delta claims, and that Delta repeatedly refused assistance from both
CrowdStrike and Microsoft (MSFT.O), opens new tab. Delta did not immediately
comment on CrowdStrike's suit.
Advertisement · Scroll to continue

CrowdStrike is seeking a declaratory judgment plus legal fees.
Delta's lawsuit filed on Friday in Fulton County Superior Court called the
faulty software update from CrowdStrike "catastrophic" and said the company
"forced untested and faulty updates to its customers, causing more than 8.5
million Microsoft Windows-based computers around the world to crash."
Delta said the faulty update caused 7,000 flight cancellations, disrupted travel
plans of 1.3 million customers and cost the carrier more than $500 million.
Advertisement · Scroll to continue

CrowdStrike's lawsuit, also filed on Friday, said Delta's own response and
technology caused delays in the carrier's ability to resume normal operations.
CrowdStrike's lawsuit reiterated its contention that it has minimal liability,
something Delta rejected.
Delta said CrowdStrike is liable for over $500 million in out-of-pocket losses
as well as for unspecified lost profits, expenditures - including legal fees -
reputational harm and future revenue loss.

The incident prompted the U.S. Transportation Department to open an
investigation.
"If CrowdStrike had tested the faulty update on even one computer before
deployment, the computer would have crashed," Delta's lawsuit says.
Delta said it has invested billions of dollars in information technology
licensing and infrastructure.
Last month, a senior CrowdStrike executive apologized before Congress for the
faulty software update.


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Reporting by David Shepardson; Editing by Rod Nickel

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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