Delta Airlines is suing CrowdStrike over a July software crash that forced the carrier to cancel more than 7,000 flights.
Transcript:
Conway Gittens: The Street is on the mend to start a new week after the S&P 500 snapped a six-week winning streak. The tech-heavy Nasdaq is at a record high ahead of earnings from some of its biggest players. In addition, oil prices are sharply lower after Israel’s attack on Iran failed to disrupt global energy supplies.
In other news – Delta and Crowdstrike are officially heading to court. The airline is suing the software security firm for causing the massive computer outage in July that forced Delta to cancel more than 7,000 flights. Some 1.3 million passengers were impacted over a five-day period.
The failed software upgrade knocked computers offline around the globe, including those of Delta’s rivals. Delta, however, struggled more than any other company to get back online. Nevertheless, its lawsuit clearly pins the blame on CrowdStrike, “Because the faulty update could not be removed remotely, CrowdStrike crippled Delta’s business and created immense delays for Delta customers.”
Delta is seeking reimbursement of more than $500 million, as well as additional money for lost profits, attorney fees, and compensation for “reputational harm and future revenue loss.”
CrowdStrike responded to the lawsuit with a statement. “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.”
The Department of Transportation is looking into what happened at Delta during the tech snafu.
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