Delta Airlines is preparing to sue cybersecurity firm CrowdStrike following the largest IT outage in history.
The July 19 outage impacted thousands of flights and cost the airline an estimated $500 million.
As previously reported by The Dallas Express, the global tech crisis, triggered by a faulty update from CrowdStrike, led to massive disruptions in Delta’s and other airlines’ operations, including the cancellation of more than 4,000 flights earlier this month.
Delta CEO Ed Bastian announced the company’s decision to seek legal damages during a recent appearance on CNBC’s “Squawk Box.”
Bastian emphasized the necessity of holding CrowdStrike accountable, stating, “If you’re going to be having access, priority access to the Delta ecosystem in terms of technology, you’ve got to test the stuff you got. You can’t come into a mission-critical 24/7 operation and tell us we have a bug.”
“We have to protect our shareholders. We have to protect our customers, our employees, for the damage, not just to the cost of it, but to the brand, the reputational damage, and the physical channel,” he added.
The IT outage not only impacted Delta’s finances but also caused significant reputational damage, leading to a wave of customer refund requests and flight scheduling issues, as previously covered by The Dallas Express.
Delta has now hired attorney David Boies to pursue compensation from both CrowdStrike and Microsoft, according to a report from Zero Hedge.
Shares of CrowdStrike have taken a big hit in recent weeks, dropping 40% and retracing 50% of their gains from earlier in the year.
The outage’s impact was felt worldwide, with US Fortune 500 companies facing potential losses of up to $5.4 billion, according to insurer Parametrix. According to Reuters, the global financial impact could reach $15 billion, with global insured losses estimated between $1.5-3 billion.
The outage has also spurred a wave of anticipated lawsuits from other companies affected by the disruptions. If Delta’s lawsuit proceeds, it could set a precedent for further legal actions against CrowdStrike and Microsoft.