CrowdStrike rejected Delta Air Lines’ assertion that it should be held responsible for flight interruptions that occurred after a July 19 global outage brought on by a defective upgrade, indicating that it had limited potential liability.
Rejecting a claim made by Delta Air Lines (DAL.N) that it should be held accountable for flight disruptions following a July 19 global outage caused by a faulty update, CrowdStrike (CRWD.O) indicated it had little possible culpability. CEO of Delta, Ed Bastian, announced last week that the American airline had lost $500 million due to the disruption and that legal action would be taken to recover damages from the cybersecurity company.
In a letter from an outside attorney, CrowdStrike reaffirmed its apology to the airline operator but expressed its disappointment in Delta’s claim that it behaved inappropriately, saying it “strongly rejects any allegation that it was grossly negligent or committed misconduct.” In the course of six days, Delta canceled nearly 6,000 flights, affecting over 500,000 people. The U.S. Transportation Department is looking into why it took longer than other airlines to recover from the disruption.
According to the letter from CrowdStrike, “any liability by CrowdStrike is contractually capped at an amount in the single-digit millions.”Soon after the disruption, CrowdStrike contacted Delta to extend an offer of support. “Additionally, CrowdStrike’s CEO personally reached out to Delta’s CEO to offer onsite assistance, but received no response,” the letter stated.
In a letter last week, Delta informed Congress that the flawed CrowdStrike upgrade “impacted more than half of Delta’s computers, including many of Delta’s workstations at every airport in the Delta network.” The statement stated that Delta’s “complex IT system, which distributes and synchronizes all our data, including the data that feeds our crew tracking and gating software, required manual recovery.”
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