October 28, 2024 at 10:20AM
Delta Air Lines is suing CrowdStrike for approximately $500 million in lost revenue due to a severe IT outage in July that led to 7,000 canceled flights affecting over a million customers. CrowdStrike argues Delta’s claims stem from misinformation and inadequate IT infrastructure, while the airline navigates a federal investigation.
**Meeting Takeaways: Delta Air Lines vs. CrowdStrike Lawsuit**
1. **Background of the Incident**:
– Delta Air Lines is suing CrowdStrike for an estimated $500 million in lost revenue due to a global IT outage in July.
– Delta faced significant operational disruption, resulting in approximately 7,000 canceled flights and affecting around 1.3 million customers.
2. **Legal Action**:
– Delta filed a complaint against CrowdStrike in a Georgia state court, alleging that CrowdStrike failed to adequately test its Falcon sensor update, which caused widespread blue screen errors on Delta’s systems.
– Delta has engaged David Boies from Boies Schiller Flexner for legal representation.
3. **CrowdStrike’s Defense**:
– CrowdStrike claims that Delta’s assertion is based on misinformation and emphasizes that the slow recovery was largely due to Delta’s outdated IT infrastructure.
– They highlighted that they had offered Delta on-site support, which was rejected by the airline as it came too late.
4. **Microsoft’s Involvement**:
– Microsoft also faced accusations from Delta regarding its role in the outage and asserted that Delta’s claims were misleading and unfounded.
5. **Ongoing Investigations and Complaints**:
– Delta is undergoing an investigation by the US Transportation Department over the delay in recovery from the outage.
– There have been around 3,000 complaints, with incidents of passengers being forced to sleep at the airport due to the disruptions.
6. **Statements from Leadership**:
– Transportation Secretary Peter Buttigieg deemed the slow recovery by Delta as “unacceptable.”
– CrowdStrike’s spokesperson criticized Delta for choosing litigation instead of resolving the matter collaboratively.
7. **Next Steps**:
– Delta is determined to pursue legal action while also managing the fallout from the Transportation Department’s investigation and public dissatisfaction from customers.
**Action Items**:
– Monitor developments in the lawsuit and response from CrowdStrike.
– Prepare for potential media inquiries regarding Delta’s customer service responses during the outage.
– Stay updated on the Transportation Department’s investigation outcomes.