Delta Air Lines has disclosed that it is seeking compensation from CrowdStrike and Microsoft following a significant software outage that disrupted operations on July 19. The outage reportedly forced Delta to cancel approximately 6,000 flights, resulting in estimated losses of between $350 million and $500 million.
According to CNBC, the airline has enlisted prominent attorney David Boies to lead the legal efforts against the two tech companies. While no lawsuit has been filed yet, Delta wants to hold CrowdStrike accountable for its software update that caused widespread failures across numerous industries, including aviation.
CrowdStrike’s stock fell by 5.5% after-hours trading as news of Delta’s actions emerged. The cybersecurity firm has stated that its liability may be limited to refunds, hindering Delta’s chances of receiving substantial compensation. Experts note that CrowdStrike’s terms restrict liability to the fees paid for its software, making it challenging for Delta to claim damages for lost revenue.
Analysts believe the airline’s reputation and financial standing may take a significant hit due to this disruption. Aside from the imminent lawsuit, the Atlanta-based airline also deals with over 176,000 refund requests from passengers affected by the cancellations. The outcome of Delta’s pursuit of damages will be known as the legal process unfolds.
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