The cybersecurity firm CrowdStrike is refuting Delta Airlines’ claims that it was responsible for the airline’s multi-day outage, according to a recent Wall Street Journal report. CrowdStrike has labeled Delta’s $500 million lawsuit as meritless, setting the stage for a potentially protracted legal battle. Despite enlisting prominent lawyer David Boies, Delta is expected to face tough scrutiny.
Michael Carlinsky, an attorney at Quinn Emanuel Urquhart & Sullivan representing CrowdStrike, stated, “Should Delta pursue this path, Delta will have to explain to the public, its shareholders, and ultimately a jury why CrowdStrike took responsibility for its actions—swiftly, transparently, and constructively—while Delta did not.” This statement highlights the disparity in responses to the outage, with CrowdStrike emphasizing its proactive approach while implicitly criticizing Delta’s handling of the situation. While Delta experienced a prolonged disruption, competitors recovered much faster, raising questions about Delta’s internal recovery processes.
Delta CEO Ed Bastian stated in a CNBC interview that the airline intends to recoup the $500 million in lost revenue and compensation costs. The airline has retained the litigation firm Boies Schiller Flexner to assist in its recovery efforts. However, Delta’s extended downtime has prompted a U.S. regulator investigation into why its recovery lagged behind other airlines affected by the same incident. This investigation adds another layer of complexity to the situation and could potentially influence the outcome of the lawsuit.
In a letter to Delta, CrowdStrike expressed disappointment with the airline’s accusations and firmly rejected any allegations of gross negligence or misconduct. The cybersecurity firm also indicated its willingness to collaborate with Delta to resolve any outstanding issues. Significantly, the letter revealed that CrowdStrike’s contractual liability is capped in the single-digit millions, substantially less than the amount Delta seeks in damages.
While CrowdStrike has offered an apology to Delta, the company maintains it is not responsible for the extent of the disruption and associated losses. The apology, however, may not be enough to appease Delta, given the substantial financial impact of the outage. The ongoing investigation and the significant difference between Delta’s claimed losses and CrowdStrike’s capped liability suggest that this dispute is far from resolved.
