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Scrape Timestamp (UTC): 2024-10-28 14:20:17.451
Source: https://www.theregister.com/2024/10/28/delta_airlines_crowdstrike_lawsuit/
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Delta officially launches lawyers at $500M CrowdStrike problem. Legal action comes months after alleging negligence by Falcon vendor. Delta Air Lines is suing CrowdStrike in a bid to recover the circa $500 million in estimated lost revenue months after the cybersecurity company "caused" an infamous global IT outage. Delta, a major US carrier, was among the most vocal victims of the outage in July, reporting thousands of canceled flights which affected more than a million customers, and explored legal avenues to recoup the lost funds early on, hiring David Boies of Boies Schiller Flexner. Delta had to cancel about 7,000 flights over the five-day period from July 19 to July 24 – a huge disruption hitting around 1.3 million customers and leading to multiple class-action lawsuits from affected passengers. Earlier suggestions that the airline itself may seek to recover damages from both CrowdStrike and Microsoft are somewhat confirmed now a complaint against the former was filed in a Georgia state court on Friday. Delta argues that CrowdStrike failed to properly test the Falcon sensor update that led to the widespread blue screen errors on many of its customers' systems. "CrowdStrike caused a global catastrophe because it cut corners, took shortcuts, and circumvented the very testing and certification processes it advertised, for its own benefit and profit," the lawsuit reads per AP News. In response, CrowdStrike said Delta's claims were built on misinformation and that the airline's failure to modernize its dated IT infrastructure was the core reason why it took so long to recover from the outage. "While we aimed to reach a business resolution that puts customers first, Delta has chosen a different path," said a CrowdStrike spokesperson in a statement sent to The Register today. "Delta's claims are based on disproven misinformation, demonstrate a lack of understanding of how modern cybersecurity works, and reflect a desperate attempt to shift blame for its slow recovery away from its failure to modernize its antiquated IT infrastructure." Regarding Delta's allegedly aging IT kit, Microsoft made a similar accusation in response to Delta's threat of legal action against it in August, adding that the airline's suggestion that Windows was complicit in the outage was "false" and "misleading." CrowdStrike's lawyer, Michael B Carlinsky, also previously noted that the security shop offered Delta free, on-site support to help the airline return to normal service. He said Delta rejected this offer and if the airline did go ahead with the litigation, then CrowdStrike would "respond aggressively." Delta said this offer of help came too late, more than 65 hours after the initial incident took hold and after the point at which most of its critical systems were back online. The airline didn't immediately respond to our request for additional comment. While Delta attempts to recover some lost revenue from CrowdStrike's pockets, it's also having to deal with the US Transportation Department's investigation into the incident and why the airline took days to recover. Delta was by far and away the hardest-hit airline in the US, despite other major carriers Allegiant Air, American Airlines, Frontier Airlines, Spirit Airlines, and United Airlines all reporting major issues. Transportation Secretary Peter Buttigieg said at the time that the slow recovery was "unacceptable." Around 3,000 complaints were made against Delta including those from people forced to sleep on airport floors as they waited for their flight to be rescheduled.
Daily Brief Summary
Delta Air Lines has filed a lawsuit against cybersecurity firm CrowdStrike, seeking to recover approximately $500 million in losses due to a major IT outage.
The outage occurred in July, resulting in around 7,000 flight cancellations and affecting over 1.3 million customers, sparking several class-action lawsuits.
Delta claims CrowdStrike's Falcon sensor update was not adequately tested, leading to widespread system failures.
CrowdStrike counters Delta's allegations, arguing that the airline's outdated IT infrastructure was the primary reason for the prolonged recovery time.
Microsoft also refuted claims linking it to the outage, criticizing Delta's outdated systems and dismissing allegations of Windows causing the outage as "false."
CrowdStrike offered Delta on-site support post-outage, which Delta contends came too late to be effective.
The U.S. Transportation Department is investigating the incident and Delta's slow recovery, which was deemed "unacceptable" by Transportation Secretary Peter Buttigieg.
Delta faces additional pressures from public complaints and the burden of recovering its operational stability and customer trust.