Delta Air Lines recently faced a massive outage that led to thousands of flight cancellations, costing the company approximately $500 million in losses. In response to the outage, Delta CEO Ed Bastian announced that the airline had no choice but to seek damages to recover its losses. The company informed CrowdStrike and Microsoft that they were planning to pursue legal claims and had hired law firm Boies Schiller Flexner to represent them. However, CrowdStrike claims that Delta rejected onsite assistance despite their CEO, George Kurtz, reaching out to offer help.
CrowdStrike’s Position
In a letter written by Michael Carlinsky, CrowdStrike’s lawyer, he expressed concerns about Delta’s litigation threats and the misleading narrative that CrowdStrike was responsible for the airline’s IT decisions and response to the outage. Carlinsky highlighted that CrowdStrike’s contractual liability is limited, and Delta would need to explain its actions to the public, shareholders, and potentially a jury. He mentioned that Delta would need to preserve various documents related to its IT infrastructure, business continuity plans, and handling of outages in the past five years.
Despite CrowdStrike’s response, Delta did not comment on the letter or the allegations made against them. The airline faced criticism for not accepting assistance from CrowdStrike during the outage, which resulted in more than 5,000 flight cancellations. This silence from Delta raises questions about the company’s handling of the situation and its willingness to work cooperatively to find a resolution.
Following the outage, CrowdStrike vowed to release future software updates in stages to prevent similar incidents from occurring in the future. The company is committed to transparency, swift action, and constructive responses to any IT issues that may arise. Despite the challenges faced during the outage, CrowdStrike remains focused on improving its services and preventing any disruptions to its customers.
On July 30, CrowdStrike shareholders filed a lawsuit against the company in a Texas federal court, seeking damages for declines in their investments due to the outage. The legal battle between Delta and CrowdStrike is expected to escalate as both parties seek to defend their positions and seek compensation for the losses incurred. The outcome of this legal dispute could have long-term implications for both companies and set a precedent for future IT-related incidents in the industry.
The conflict between Delta Air Lines and CrowdStrike highlights the challenges faced by companies in the face of IT outages and disruptions. The response of both parties to the outage, the legal threats, and the shareholder lawsuit demonstrate the complexities of managing IT infrastructure in a highly competitive and fast-paced industry. As the case unfolds, it will be essential for Delta and CrowdStrike to find a resolution that benefits all parties involved and prevents similar incidents from occurring in the future.