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CrowdStrike has responded firmly to accusations that it is responsible for Delta Air Lines’ significant flight cancellations following a major outage in July. The cybersecurity firm rejected claims that its software update caused the disruption and has criticized Delta’s handling of the situation.
In July, Delta experienced a severe outage that resulted in over 5,000 flight cancellations from July 19 to July 25. Delta CEO Ed Bastian disclosed that the outage, which occurred during one of the busiest travel periods of the year, cost the airline approximately $500 million, including compensation to customers. This financial impact has led Delta to consider pursuing legal action against CrowdStrike and Microsoft, seeking damages for the extensive operational disruptions.
CrowdStrike’s lawyer, Michael Carlinsky, responded to Delta’s claims by stating that the airline’s decision to pursue litigation has created a misleading narrative about the firm’s role in the outage. Carlinsky pointed out that CrowdStrike’s CEO, George Kurtz, had offered on-site assistance to Delta but received no response. According to Carlinsky, Delta’s actions have unfairly attributed the outage’s impact to CrowdStrike’s decisions, despite the company’s efforts to assist.
The July outage was linked to a problematic software update and affected a range of industries, including banking, healthcare, and air travel. This incident has significantly impacted CrowdStrike’s stock value, which has fallen by over 36% since the outage.
Carlinsky’s letter to Delta’s legal team criticized the airline for not accepting CrowdStrike’s support and for potentially misleading the public about the firm’s responsibility. He indicated that if Delta proceeds with legal action, it will need to justify its claims and disclose its IT infrastructure and business continuity plans.
CrowdStrike has stated that its contractual liability is limited to a few million dollars and has expressed a desire to resolve the issue cooperatively with Delta. In response to the incident, CrowdStrike has promised to implement staged releases for future software updates to avoid similar issues.
Additionally, CrowdStrike faces a lawsuit from its shareholders, who have filed in a Texas federal court seeking damages for losses related to the company’s stock decline. The firm is scheduled to report its fiscal second-quarter results on August 28.
Microsoft has not yet commented on the ongoing dispute or the impact of the outage.