July 30, 2024 at 03:05PM
Delta Air Lines suffered significant financial losses due to the CrowdStrike outage and has engaged legal representation to consider recovering an estimated $500 million. The outage, caused by a faulty Channel File update, affected millions of Windows machines globally and implicates both CrowdStrike and Microsoft. Delta’s engagement of high-profile lawyer David Boies and his firm reflects its pursuit of recovery options, potentially including legal action against the two tech companies. As Delta faces scrutiny from government regulators following flight cancellations, it is strategizing to shift responsibility for the disruption onto CrowdStrike and Microsoft, with potential legal actions pending.
Delta Air Lines suffered substantial financial losses due to the CrowdStrike outage, prompting them to engage prominent lawyer David Boies and his firm, Boies Schiller Flexner, in an effort to recoup an estimated $500 million. The outage, caused by a faulty Channel File update, affected millions of Windows machines globally, leading to shared accountability between CrowdStrike and Microsoft.
Boies’s history includes high-profile cases such as the Department of Justice’s antitrust battle against Microsoft and representation of tech sector clients like Theranos. Although there is no official lawsuit against CrowdStrike and Microsoft, Delta’s choice to enlist a high-profile lawyer signifies a proactive approach. The company’s attempt to shift accountability may be influenced by ongoing government scrutiny, notably an investigation opened by the US Department of Transportation following a significant number of cancellations and reimbursement requests from passengers.
Delta’s motivation to explore legal recourse is understandable given that CrowdStrike’s terms and conditions currently limit liability to refunding paid customer services, potentially leaving large companies like Delta at a disadvantage. While Delta’s specific contractual terms with CrowdStrike remain undisclosed, the airline is likely pursuing all available avenues to mitigate its losses amid regulatory and public scrutiny.