People looking for missing bags wait in line to speak with Delta Air Lines baggage in the Delta Air Lines baggage claim area Los Angeles International Airport (LAX) on July 24, 2024 in Los Angeles, California. The United States Department of Transportation (USDOT) announced an investigation into Delta Air Lines to comply with passenger protection laws following the CrowdStrike global software outage that disrupted airlines, banks, TV channels and other businesses worldwide.CrowdStrike, the cybersecurity company that caused a global computer outage last week, on on July 24, 2024 said that the breakdown stemmed from a flaw in its test software. In an incident report, the company said the glitch was pushed out to millions of Windows computers and that the company will change the way it handles such updates in the future.PATRICK T. FALLON/AFP via Getty Images
CrowdStrike has strongly refuted allegations that it is responsible for the extending IT ourage experienced by Delta Air Lines, which according to VCPost, led to a reported $500 million in losses. Instead, the cybersecurity firm has accused Delta of mismanaging the situation and contributing to a misleading narrative about the incident.
In a recent letter, obtained by the Wall Street Journal, to Delta's legal team, CrowdStrike's attorney countered the airline's claims. Michael Carlinsky of Quinn Emanuel Urquhart & Sullivan, emphasized that CrowdStrike acted swiftly and transparently in addressing the problem, offering on-site assistance to Delta, which was reportedly declined.
The letter challenges Delta to justify its handling of the disruption, pointing out that CrowdStrike's liability is limited to a "single-digit millions" amount as per its contract.
Delta, which has experienced ongoing issues since the outage, reported that the disruption, which grounded thousands of flights, was worsened by what it claims was CrowdStrike's fault.
Last week, VCPost learned that Delta's CEO, Ed Bastian, is considering legal action to recover its losses and has enlisted the help of litigation firm Boies Schiller Flexner.
Despite this, CrowdStrike contends that its response was prompt and effective, noting that the issues persisted at Delta longer than at other airlines affected by the same update.
The outage, which impacted approximately 8.5 million devices, has been a major concern not only for Delta but also for other institutions and businesses. CrowdStrike has highlighted that most affected organizations, including banks and government agencies, were able to resume normal operations within a few days, unlike Delta, which continued to face significant operational challenges.
The U.S. Department of Transportation is currently investigating how Delta managed the disruption and its response to customers. CrowdStrike's letter also requests that Delta preserve all relevant documents and records related to its IT systems and past disruptions to ensure a thorough examination of the incident.
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