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Delta sues CrowdStrike after widespread IT outage that caused thousands of cancellations
cnbc ^ | 10/25/2024 | Jordan Novet and Leslie Josephs

Posted on 10/27/2024 2:59:22 PM PDT by DFG

Delta Air Lines on Friday filed a lawsuit against CrowdStrike in Georgia, accusing the security software vendor of breach of contract and negligence after an outage in July that brought down millions of computers and prompted 7,000 flight cancelations.

Other airlines recovered more quickly than Atlanta-based Delta, which said the incident reduced revenue by $380 million and brought $170 million in costs. The flawed software update affected computers running Microsoft’s Windows operating system.

Days after the outage, Delta hired David Boies of law firm Boies Schiller Flexner to seek damages from CrowdStrike and Microsoft. Delta asked for damages to cover its losses, along with litigation costs and punitive damages.

“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,” Delta said in its complaint. “If CrowdStrike had tested the Faulty Update on even one computer before deployment, the computer would have crashed.”

Delta had disabled automatic updates from CrowdStrike but this one reached its computers anyway, the airline said in the suit. Delta claimed that CrowdStrike’s Falcon software created and exploited an unauthorized door in Windows that the airline said it never would have allowed.

“The havoc that was created deserves, in my opinion, to be fully compensated for,” Delta CEO Ed Bastian told CNBC in an interview earlier this month.

CEO George Kurtz has apologized for the incident, and the company has committed to changing its practices to prevent similar events. In August, CrowdStrike lowered its full-year guidance because of a customer commitment package related to the outage.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: crowdstrike; deltaairline; deltaairlines; georgia; outage
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1 posted on 10/27/2024 2:59:22 PM PDT by DFG
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To: DFG

Outsourcing can be problematic


2 posted on 10/27/2024 3:00:52 PM PDT by monkeyshine (live and let live is dead)
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To: DFG

Crowdstrike is actually pretty good software, and good at preventing intrusions.

They should cancel the rest of the contract, and see how Delta fares with Crowdstrike.

It won’t be pretty.


3 posted on 10/27/2024 3:06:46 PM PDT by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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To: texas booster

Crowdstrike was a big improvement over McAfee at my last company.

Unfortunately, McAfee is still out there.


4 posted on 10/27/2024 3:38:20 PM PDT by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure..)
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To: texas booster

We use CrowdStrike and we had to do manual remediation, five of us, for about two weeks.

The issue was that we used Bitlocker to encrypt our hard drives, and we had to touch every one of them, unlocking them with that 48 character key that had to be manually entered in.

It was a Charlie Foxtrot.

CrowdStrike is better than the alternatives, IMO, but that doesn’t mean they should be immune to the damage they caused with carelessness.


5 posted on 10/27/2024 3:51:10 PM PDT by rlmorel ("A people that elect corrupt politicians are not victims...but accomplices." George Orwell)
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To: DFG

Delta should sue themselves for being the crap airline they are.


6 posted on 10/27/2024 3:55:01 PM PDT by Dave911
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To: rlmorel

The is a startup with a novel data and log protection approach- Walacor.

Everything is encrypted and tamper proof/evident (provable immutability), and backed up.


7 posted on 10/27/2024 3:55:13 PM PDT by Triple (Socialism denies people the right to the fruits of their labor, and is as abhorrent as slavery)
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To: DFG

In the contract Delta signed, the vendor is liable only up the cost of the software. This may be an onerous condition, but Delta agreed to it.

So the suit is a just a public tantrum, and will be tossed out.


8 posted on 10/27/2024 4:09:15 PM PDT by proxy_user
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To: Dave911
Delta should sue themselves for being the crap airline they are.

Could not agree more. Purchased tickets, covid hit, no flights, had credit. 2 years later we used the credit and bought more expensive tickets to travel but had a death in the family. Our credit expired a year later with no warning. I asked Delta to simple restore the credit so we could travel. The email I received told me not to reply again because it would be on no use. No credit will be given.

9 posted on 10/27/2024 4:11:01 PM PDT by New Perspective (As Leonard Cohen said once in an interview, “You won’t like what comes after America”)
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To: Dave911

Delta should sue themselves for being the crap airline they are.
**********
I have flown them all and Delta is better than the other crap airlines.


10 posted on 10/27/2024 4:22:59 PM PDT by yldstrk
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To: yldstrk

Delta should sue themselves for being the crap airline they are.
**********
I have flown them all and Delta is better than the other crap airlines.
******
Which ain’t saying much.


11 posted on 10/27/2024 4:23:46 PM PDT by yldstrk
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To: DFG
Delta has no excuse for their weeks long return to service. Other companies recovered within days.

Delta's CIO and chief security lead are responsible here. They need to be in front of this, not the CEO Ed Bastian.

12 posted on 10/27/2024 4:26:38 PM PDT by HonkyTonkMan ( )
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To: yldstrk

Good for you, my experience has been they suck.


13 posted on 10/27/2024 5:37:31 PM PDT by Dave911
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To: yldstrk
I have flown them all and Delta is better than the other crap airlines.

Being the least crappy of all the crappy airlines isn't exactly a ringing endorsement, LOL!

IMO, they're *ALL* crappy, btw. I've flown most/all of them over the last 30+ years. I really couldn't say one's markedly better than any others. American & UAL are the only two Airlines that have ever lost my luggage in all my years of traveling. They're both the worst, IMO.

14 posted on 10/27/2024 5:40:19 PM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Triple

That’s good-always looking for a better mousetrap, that is for sure. I don’t make those decisions in my Enterprise, but I am sure they are always on the lookout for a better solution.


15 posted on 10/27/2024 5:54:58 PM PDT by rlmorel ("A people that elect corrupt politicians are not victims...but accomplices." George Orwell)
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To: rlmorel
Agreed on all but one point: We use CS, had to do manual remediation, use Bitlocker, had to touch each and every machine. Charlie Foxtrot indeed. Also agree that it's better than the alternatives.

However, customers who don't read the EULA get what they signed for, which it usually a return of the purchase price and that's all she wrote. If a company wants better license terms they have an opportunity to negotiate terms prior to purchase. Highly restrictive software EULAs have been the default since the late 70's. "Not suitable for any purpose. Not responsible for consequential damages. Remedy is limited to refund of purchase price." All that stuff.

Delta's suit is just for show. Delta's lawyers and management were asleep at the wheel.

16 posted on 10/27/2024 6:45:05 PM PDT by dayglored (This is the day which the LORD hath made; we will rejoice and be glad in it. Psalms 118:24)
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To: New Perspective

I would have gotten the credit back. When they told you not to send another reply, send another reply.

Calling works much better in disputes with companies. Be polite with the first 2-3 layers of people. Ask for what you want. If they say they can’t, talk to their supervisor. If that supervisor doesn’t have the authority to give you what you want, ask to speak to their supervisor. At some point, you will get to the person who can make an exception to the policy, and would rather give you what you want rather than having to spend time dealing with it.

I’ve done this a number of times and always get what I want.

I’ve even done it for my wife 5-6 times regarding prescription coverage when she really needs a specific drug other than some generic. First question to ask the person answering the phone if they are a licensed medical doctor. After that, follow the above steps. Works every time.


17 posted on 10/27/2024 6:47:26 PM PDT by WASCWatch ( WASC)
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To: WASCWatch
I appreciate your feed back and did plan on calling. Had to cool down a bit first. The email reply also had a couple of other insults as well. I thought about posting it on Delta's X feed :)

I will let you know how it turns out after I call.

18 posted on 10/27/2024 7:20:27 PM PDT by New Perspective (As Leonard Cohen said once in an interview, “You won’t like what comes after America”)
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To: rlmorel

Worth a look…imo


19 posted on 10/27/2024 8:20:28 PM PDT by Triple (Socialism denies people the right to the fruits of their labor, and is as abhorrent as slavery)
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To: New Perspective

It’s going to take more than one call. 3-4 is more likely. Just don’t quit.


20 posted on 10/27/2024 11:12:13 PM PDT by WASCWatch ( WASC)
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