Delta reportedly seeking potential damages from CrowdStrike, Microsoft after global IT outages
Written by ABC AUDIO on July 30, 2024
(NEW YORK) — Delta Air Lines has reportedly hired a prominent law firm to help the Atlanta-based carrier pursue potential damages from CrowdStrike and Microsoft following the global tech outages that caused a slew of internal computer issues and prompted thousands of canceled flights earlier this month.
CNBC first reported that Delta had hired Boies Schiller Flexner LLP, the law firm whose chairman David Boies previously represented the U.S. government in the landmark antitrust case against Microsoft.
Although a lawsuit has not yet been filed, CNBC reported that Delta plans to seek potential compensation from both companies.
When asked for further comment on the matter and the report that Delta had hired Boies, a spokesperson for the airline told ABC News that the company had “no information to add.”
Following the tech chaos on July 19, which affected CrowdStrike customers who use Microsoft Windows products, Delta’s systems were disrupted for more than six days, causing widespread flight delays and cancellations, service failures and an influx of frustrated, stranded passengers, which prompted an investigation by the U.S. Department of Transportation.
Crowdstrike said it deployed a fix for the faulty update on July 19, hours after the initial outage.
The IT outage resulted from a faulty software update initiated by CrowdStrike on July 19. Mark Lanterman, chief technology officer at the cybersecurity firm Computer Forensic Services, told ABC News previously that the faulty update subsequently caused a meltdown within Windows operating systems.
“The CrowdStrike update is deep inside the operating system,” Lanterman said. “When that was installed, there was bad code inside of this update. And when Windows came across the bad code, it panicked and it crashed.”
According to a statement from Delta earlier this week, “Upward of half of Delta’s IT systems worldwide are Windows-based.”
On Thursday, Delta announced that “operational reliability [had] returned to normal” across mainline and Delta Connection flights.
“Delta is committed to caring for our customers during this time and has taken a number of other steps to make things right for customers affected by delays and cancellations,” the company said in an announcement.
Those steps included reimbursing out-of-pocket expenses, extended delay refunds, issuing SkyMiles Program miles and travel vouchers, notifying customers of rebooking options, and extending a travel waiver for all customers with travel booked from July 19-28.
According to CNBC, the outages reportedly cost Delta between an estimated $350 million and $500 million.
CrowdStrike and Microsoft did not immediately respond to ABC News’ request for comment.
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