Delta is preparing a major damages lawsuit against CrowdStrike and Microsoft

Date:
Tue, 30 Jul 2024 14:52:33 +0000

Description:
Delta Airlines estimated to have lost up to $500 million from CrowdStrike outage, and is now seeking losses.

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Delta Airlines has enlisted legal help to seek damages from CrowdStrike and Microsoft after a significant outage earlier this month (via CNBC ).

The incident, which happened on July 19, stemmed from a software update by CrowdStrike that led to the widespread failure of Microsoft systems across major industries, such as banking, healthcare and aviation.

An estimated 8.5 million Windows devices had been affected by the update, including many of Delta Airlines servers and those of other airlines, leaving thousands of flights grounded. Delta lawsuit against CrowdStrike and
Microsoft

Airlines were hit particularly hard by the outage, prompting the Department
of Transportatation to launch an investigation into Deltas operations amid
the disruptions. Overall, the outage cost the airline an estimated $350-500 million, with nearly 7,000 flights canceled and over 176,000 refund or reimbursement requests filed.

By selecting David Boies, an American attorney known for his previous involvement in high-profile cases, Delta is indicating that it could seek significant compensation from the tech firms. Boies represented the US in its antitrust case against Microsoft, and also played an important role in oveturning Californias ban on gay marriage.

While no formal lawsuit has been filed yet, Deltas plans to pursue damages have already impacted CrowdStrikes market value. The cybersecurity firms
stock plummeted a staggering 25% in the two trading days following the
outage, reflecting investor concern.

Beyond aviation, insurance firm Parametrix estimated that the incident caused a loss of $5.4 billion among Fortune 500 companies alone, excluding
Microsoft. Moreover, other companies may wish to join Delta in seeking compensation from Microsoft and CrowdStrike following the outage, which will only be revealed as companies begin to calculate their losses. More from TechRadar Pro These are the best small business servers Check out our roundup of the best endpoint protection software CrowdStrike CEO says nearly all affected servers are now back online



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Link to news story: https://www.techradar.com/pro/security/delta-is-preparing-a-major-damages-laws uit-against-crowdstrike-and-microsoft


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