Delta Airlines accuses CrowdStrike of causing $500 million in losses

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Delta Airlines and CrowdStrike Clash Over Massive Network Outage

In a heated exchange of accusations, Delta Airlines and cybersecurity company CrowdStrike are at odds following a global network outage last month. Delta Airlines has expressed frustration with CrowdStrike in a new letter on Thursday, claiming negligence on the part of the cybersecurity company.

The US-based carrier alleges that it was forced to cancel thousands of flights and suffered a loss of at least $500 million as a result of the outage, which originated from CrowdStrike on July 19. Microsoft estimated that 8.5 million Windows devices worldwide were disabled due to a corrupted software update sent out by CrowdStrike.

Despite other airlines recovering from the outage, Delta Airlines’ services were impacted for days, leading to the cancellation of around 7,000 flights over five days. The airline is now under investigation by the US Department of Transportation over the disruptions.

Delta Airlines CEO Ed Bastian described the situation as “unacceptable” and stated that 1.3 million of Delta’s customers were affected by the technology meltdown. Both CrowdStrike and Microsoft have denied responsibility for the disruptions at Delta, with Microsoft pointing out that Delta was operating with outdated IT infrastructure compared to its competitors.

In response to Delta’s threats of legal action, CrowdStrike and Microsoft have vowed to defend themselves. Delta’s attorney, David Boies, emphasized that the airline had invested billions in its technology and struggled to restore operations due to its reliance on Microsoft and CrowdStrike.

The clash between Delta Airlines and CrowdStrike has escalated, with legal challenges on the horizon for both parties. A lawsuit has been filed against Delta on behalf of affected passengers, alleging inadequate compensation and attempts to release the airline from legal claims. CrowdStrike, on the other hand, is facing a lawsuit from shareholders accusing the company of misleading statements about its software testing.

As the dispute continues to unfold, the repercussions of the global network outage are far-reaching, impacting not only Delta Airlines but also the reputation and operations of CrowdStrike and Microsoft.

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