Delta Prepares Major Damages Suit Against CrowdStrike and Microsoft
Delta Airlines has hired legal counsel to seek damages from CrowdStrike and Microsoft following a significant outage earlier this month (via CNBC).
The incident, which occurred on July 19, was the result of a CrowdStrike software update that led to widespread outages of Microsoft systems across major industries including banking, healthcare, and aviation.
An estimated 8.5 million Windows devices were affected by the update, including many servers for Delta Airlines and other airlines, causing thousands of flights to be grounded.
Delta Lawsuit Against CrowdStrike and Microsoft
Airlines were hit particularly hard by the outage, prompting the Department of Transportationatation to launch an investigation into Delta’s operations amid the disruptions. In total, the outage cost the airline an estimated $350-500 million, with nearly 7,000 flights canceled and more than 176,000 requests for refunds or refunds.
By selecting David Boies, an American lawyer known for his previous involvement in high-profile cases, Delta is signaling that it can seek significant compensation from the tech companies. Boies represented the US in the antitrust case against Microsoft and also played a key role in overturning California’s ban on gay marriage.
While no formal lawsuit has been filed, Delta’s plans to seek damages have already had an impact on CrowdStrike’s market value. The cybersecurity firm’s shares fell as much as 25% in the two trading days following the outage, reflecting investor concern.
In addition to aviation, insurance firm Parametrix estimated that the incident caused Fortune 500 companies alone $5.4 billion in losses, excluding Microsoft. Additionally, other companies may join Delta in seeking compensation from Microsoft and CrowdStrike following the outage, which will not be disclosed until companies begin to calculate their losses.