CrowdStrike\u00a0moved Monday evening to dismiss\u00a0Delta Air Lines\u2019\u00a0lawsuit around the July cybersecurity outage that led to canceled flights and stranded passengers, arguing that the airline\u2019s litigation was an attempt to circumvent the contract between the two companies.<\/p>\n
The agreement between CrowdStrike and Delta includes a clause limiting CrowdStrike\u2019s liability and a cap on damages, which the cybersecurity provider says Delta is now trying to skirt. CrowdStrike also argued in its filing that Georgia law prevents Delta from converting a breach of contract into tort claims.<\/p>\n
\u201cAs an initial matter,\u00a0Georgia\u2019s economic loss rule specifically precludes Delta\u2019s efforts to recover through tort claims the economic damages it claims to have suffered,\u201d CrowdStrike wrote.<\/p>\n
Delta said the July cybersecurity outage cost the company more than $500 million in canceled flights, refunds and passenger accommodations. It is seeking to recoup those costs from CrowdStrike through the suit. But the damage done to Delta\u2019s reputation as a premium carrier can\u2019t yet be quantified, nor has the impact of a Department of Transportation investigation into Delta over the outage.<\/p>\n
Delta continues to rely on CrowdStrike services following the outage, likely because it is extremely difficult to change cybersecurity providers in systems as large and complicated as Delta\u2019s.\u00a0<\/p>\n
Still, CrowdStrike said it moved quickly to try and help Delta \u2014 offers the cybersecurity company says were rebuffed. \u201cWe are good for now,\u201d one message from a Delta executive cited by CrowdStrike read. The cybersecurity company said its executives were in close contact on the day of the outage.<\/p>\n
\u201cDelta repeatedly rebuffed any assistance from CrowdStrike or its partners,\u201d CrowdStrike wrote.<\/p>\n
CrowdStrike further argues that Delta\u2019s own practices and systems led to the widespread delays and cancellations, unlike other industry peers who recovered much more quickly from the outage.<\/p>\n
\u201cDelta was an outlier. Although Delta acknowledges that it took just hours\u2014not days\u2014for Delta employees to\u201d remediate the outage, CrowdStrike wrote in its filing, \u201ccancellations far exceeded the flight disruptions its peer airlines experienced.\u201d<\/p>\n
The cybersecurity company\u2019s stock took a sharp hit after the outage, plunging 44%. It\u2019s since largely recovered from those losses, posting strong quarterly results even after lowering its guidance due to the incident. CrowdStrike has been helped by the relative stickiness of its products, especially at large enterprises.<\/p>\n
A Delta spokesperson was not immediately available for comment.<\/p>\n<\/p>\n
CrowdStrike\u00a0moved Monday evening to dismiss\u00a0Delta Air Lines\u2019\u00a0lawsuit around the July cybersecurity outage that led to canceled flights and stranded passengers, arguing that the airline\u2019s litigation was an attempt to circumvent the contract between the two companies. The agreement between CrowdStrike and Delta includes a clause limiting CrowdStrike\u2019s liability and a cap on damages, which the […]<\/p>\n","protected":false},"author":0,"featured_media":13307,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-13306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=13306"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13306\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/13307"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=13306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=13306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=13306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}