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Delta Sues CrowdStrike Following July Outage That Cost Them $500M
OAN ^ | October 26, 2024 | Abril Elfi

Posted on 10/26/2024 6:19:35 PM PDT by george76

Delta Airlines has filed a lawsuit against CrowdStrike following a global outage in July that costed them over $500 million.

On Friday, Delta filed a lawsuit against CrowdStrike in Georgia accusing the security software vendor of breach of contract and negligence following an outage in July that affected millions of computers and caused 7,000 flight cancellations.

Other airlines recovered faster than Delta, which said the incident reduced revenue by $380 million and cost $170 million. The flawed software update impacted computers running Microsoft’s Windows operating system.

Days following the outage, Delta hired David Boies of law firm Boies Schiller Flexner to seek damages from CrowdStrike and Microsoft.

Delta sought damages to cover its losses, as well as litigation costs and punitive damages.

The airline said CrowdStrike is liable for over $500 million in out-of-pocket losses as well as for an unspecified amount of lost profits, expenditures, including attorneys’ fees and “reputational harm and future revenue loss.”

“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 stated that as part of its IT planning and infrastructure, it has spent billions of dollars “in licensing and building some of the best technology solutions in the airline industry.” CrowdStrike has questioned why Delta performed so poorly compared to other airlines.

Last month, CrowdStrike’s senior executive apologized to Congress for the faulty software update.

CrowdStrike’s senior vice president, Adam Meyers, stated that the company released a content configuration update for its Falcon Sensor security software, which resulted in system crashes worldwide.

“We are deeply sorry this happened and we are determined to prevent this from happening again,” Meyers told the media.

However, CrowdStrike spokesperson told CNBC in an email that Delta’s claims “are based on disproven information.

“While we aimed to reach a business resolution that puts customers first, Delta has chosen a different path,” a CrowdStrike spokesperson told CNBC in an email. “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.”


TOPICS: Business/Economy; News/Current Events
KEYWORDS: airlines; crowdstrike; crowdstrikeoutage; delta; deltaairlines; windows; windowsupdates

1 posted on 10/26/2024 6:19:35 PM PDT by george76
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To: george76

*** that costed them***

It’s hard to read an article where this is in the opening sentence. Costed them? Costed?

MAEA

Make America Educated Again.


2 posted on 10/26/2024 6:27:03 PM PDT by FamiliarFace (I got my own way of livin' But everything gets done With a southern accent Where I come from. TPetty)
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To: george76

I have only ever purchased three shares of one single stock.

I was happy watching its value more than double.

Then this whole air traffic debacle occurred and its value dropped.

I wonder if maybe I should have invested in something else instead of Crowdstrike.


3 posted on 10/26/2024 6:36:02 PM PDT by exDemMom (Dr. exDemMom, infectious disease and vaccines research specialist.)
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To: FamiliarFace

Texted them....


4 posted on 10/26/2024 7:09:47 PM PDT by Harpotoo (Being a socialist is a lot easier than having to WORK like the rest of US:-))
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To: george76
Sorry Delta, read your EULA (End User License Agreement0.

All Crowdstrike owes you is the cost of the product. No consequential damages, etc.

All software is sold like that. Your lawyers shouldn't have taken the day off when the license agreement was agreed to by your management.

Tough cookies.

5 posted on 10/26/2024 8:29:36 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: george76

put em out of business. scum.


6 posted on 10/26/2024 9:03:17 PM PDT by kvanbrunt2
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To: george76

I read somewhere that the contract limits damages to a single digit millions of dollars. I would love to see discovery in this one from Delta. So many businesses and government agencies were hit with this and they were able to recover in a day or less. Why was Delta not able to recover in a reasonable timeframe?


7 posted on 10/26/2024 9:53:26 PM PDT by gunnut
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To: dayglored

I may disagree. How does an end user know if it is Crowdstrike or Palo Alto?


8 posted on 10/26/2024 10:10:36 PM PDT by eyedigress (Trump is my President!)
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To: dayglored

I recall being near a major airport during this time at a major hotel chain.

They could no longer issue keys.

This issue ran pretty deep into the economy. Should all of these companies not expect some assurance their firewall would provide safety and not total shutdown due to incompetence?


9 posted on 10/26/2024 10:18:02 PM PDT by eyedigress (Trump is my President!)
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To: george76

bttt


10 posted on 10/26/2024 10:32:48 PM PDT by linMcHlp
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To: Lazamataz

ping


11 posted on 10/27/2024 12:27:25 AM PDT by FreedomPoster (Islam delenda est)
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To: FreedomPoster; usconservative

Thanks. Passing the ping along.


12 posted on 10/27/2024 3:32:47 AM PDT by Lazamataz (If you are upset the bullet missed, contact me immediately. I'll make sure your bullet doesn't.)
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To: george76
Delta stated that as part of its IT planning and infrastructure, it has spent billions of dollars “in licensing and building some of the best technology solutions in the airline industry.” CrowdStrike has questioned why Delta performed so poorly compared to other airlines.

This is an admission that CrowdStrike impacted the airline industry at minimum. Fact is, they affected a broad swath of industries. Each and every company affected by CrowdStrike should pile-on their own lawsuits at this point and drive this horse-crap company straight out of business.

"Ironic" that the same CEO that oversaw the decline of McAfee sits atop of CrowdStrike. How he's allowed to keep failing like this sitting on top of these tech companies just amazes me. Don't ever buy stock in any company he's associated with.

13 posted on 10/27/2024 5:03:43 AM 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: usconservative

Southwest Airlines refused Windows updates, thus was not impacted by Crowd Strike outage.?


14 posted on 10/27/2024 5:23:38 AM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76
Southwest Airlines was impacted by it, IIRC. As were other airlines.

My (now ex) girlfriends daughter was coming in for the holiday on Southwest Airlines and her flight from DC was cancelled along with so many others, so we transferred her to UA which had available flights & seats, although at a much higher price. Still, got her home for the holiday.

I also had coworkers who were stuck in Chicago due to Southwest flights getting cancelled left & right getting out of this hellhole for same reason.

15 posted on 10/27/2024 6:09:22 AM 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: eyedigress
> How does an end user know if it is Crowdstrike or Palo Alto?

Delta purchased Crowdstrike Falcon software, and deployed it in their company network. My company did the same, and we were affected by the flawed software update along with Delta and everyone else. I don't know of any connection between the flawed software update with Palo Alto Networks, a company that sells enterprise-level firewalls and other hardware.

> Should all of these companies not expect some assurance their firewall would provide safety and not total shutdown due to incompetence?

There was no firewall involved in the failed software update. Crowdstrike Falcon is software; enterprise-level firewalls (those used at the corporate level) are almost exclusively hardware, from companies like Cisco, Palo Alto, Juniper, and many others.

So if Delta's firewalls played a part in Delta's difficulty recovering after the update, that's not Crowdstrike's problem, that's Delta's problem.

Do you have a link to what you're referring to regarding Palo Alto?

16 posted on 10/27/2024 8:21:45 AM 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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