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Technology

Delta Claims $500 Million Loss Due to CrowdStrike Software Glitch

28 Oct, 2024
Delta Claims $500 Million Loss Due to CrowdStrike Software Glitch

Delta Air Lines has initiated legal proceedings against cybersecurity firm CrowdStrike, seeking $500 million in damages following a software update that reportedly caused significant disruptions. The incident, which occurred in July, led to widespread system failures, known as the "blue screen of death," affecting Delta’s operations extensively.

The repercussions of the incident were severe, with Delta stating that approximately 7,000 flights were canceled, impacting around 1.3 million passengers. The airline attributes these disruptions to the software update from CrowdStrike, claiming that the update was poorly tested and caused over $500 million in losses. The lawsuit has been filed in Fulton County Superior Court in Georgia, underscoring the seriousness of Delta’s allegations.

In its legal filing, Delta asserts that the updates issued by CrowdStrike led to catastrophic failures in their systems, with 8.5 million Windows PCs globally experiencing crashes as a result. The airline argues that the unverified software updates resulted in substantial operational challenges, including lost revenue, legal fees, damage to their reputation, and the potential for future income loss.

CrowdStrike has responded to Delta's allegations by contesting the claims, labeling them as rooted in misinformation and misunderstanding of modern cybersecurity practices. The company emphasizes that Delta's lawsuit reflects an attempt to deflect responsibility for their own outdated IT infrastructure.

CrowdStrike's statement expressed their view that Delta's claims are unfounded and demonstrate a lack of comprehension regarding cybersecurity. The firm also highlighted its commitment to ensuring the integrity and security of its services, indicating that they have been in a partnership with Delta since 2022.

According to Delta, if the problematic update had been properly tested on even one computer prior to its widespread release, the failure could have been avoided. They emphasize that because the flawed update could not be remotely uninstalled, it led to significant business disruptions for the airline and prolonged delays for passengers.

This legal dispute sheds light on the critical importance of rigorous software testing in the aviation industry, where operational reliability is paramount. As both parties prepare for what could be a lengthy legal battle, the ramifications of this incident may influence future collaborations in the tech and aviation sectors.



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