Delta Airlines To Sue Crowdstrike Seeking $500 Million Reward For Windows Outage
Delta Airlines To Sue Crowdstrike Seeking $500 Million Reward For Windows Outage
Alleges gross negligence and willful misconduct on the part of the American technology company
Delta Airlines plans to file a class-action lawsuit against Crowdstrike following the loss incurred due to the cybersecurity firm’s faulty update in July.
In the company's filing with the US Securities and Exchange Commission (SEC), the airlines sought $500 million compensation from Crowdstrike and Microsoft stating that it suffered significant financial damage because of shareholders and customers’ lawsuits.
Delta has hired high-profile attorney David Boies to represent its interests in the case. The airline alleged that the faulty update amounted to gross negligence or willful misconduct, potentially voiding contractual limits on damages typically included in enterprise software agreements.
Shareholders, who owned the company shares until 29 July, also took legal action against CrowdStrike. They claimed the company misled them regarding its software update procedures, raising questions about its transparency and risk management practices.
Meanwhile, CrowdStrike has enlisted the services of a prominent law firm Quinn Emanuel Urquhart & Sullivan to defend against the barrage of litigations. The move underscores the potential financial implications for the cybersecurity company.
The individual lawsuits may be consolidated into a class action suit to streamline the legal process, leading to a ‘bellwether’ trial, which would serve as a benchmark for future settlements.
The fallout from the software update debacle extends beyond immediate financial concerns for CrowdStrike. It faces reputational damage, which could have long-lasting effects on its business and market position in the highly competitive cybersecurity industry.
